Which of the Following Is a Correct Statement About a Minimum

question 89

Multiple Choice

Which of the following is a correct statement about a minimum wage law?

• A) It reduces costs for employers.
• B) It ensures that all who want a job can get a job with a high enough wage.
• C) It causes prices to rise as producers pay more for labor.
• D) It is a price ceiling law that makes wages higher than the market equilibrium price.
• E) It is a price floor law that forces wages to be lower than the market equilibrium price.

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Definitions:

Quantity Discounts

Price reductions offered to buyers purchasing in large volumes.

Collection Expenditures

Expenses associated with collecting payments from customers, including billing, mailing, and legal costs.

Bad-Debt Losses

Financial losses incurred when borrowers fail to repay their loans.

Accounts Receivable

Funds due from customers to a firm for delivered goods or services that remain unpaid.