Which of the Following Is True,holding All Other Things Constant,when

question 146

Multiple Choice

Which of the following is true,holding all other things constant,when comparing regions that impose a higher minimum wage to regions that impose a lower minimum wage?

• A) In regions with the highest minimum wage,most of the jobs require low skills,and workers are not productive enough to get paid the higher wage.
• B) In regions with the lowest minimum wage,most of the jobs require technical skills and no one works minimum-wage jobs.
• C) In regions with the lowest minimum wage,the price control is nonbinding; in the regions with the highest minimum wage,the price control is binding.
• D) In regions with the lowest minimum wage,the price control is binding; in the regions with the highest minimum wage,the price control is nonbinding.
• E) In regions with the highest minimum wage,the minimum wage law is legally enforced; in regions with the lowest minimum wage,the law is not strongly enforced.

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Definitions:

Interest Rate

The part of a loan that attracts interest charges for the borrower, customarily expressed as a yearly percentage of the loan's unpaid balance.

Future Value

Future value is the value of a current asset at a specified date in the future based on an assumed rate of growth over time.

Present Value

The current worth of a future sum of money or cash flows, given a specified rate of return.

Interest Rate

The percentage of a sum of money charged for its use, indicating the cost of borrowing or the return on savings.