In 2015, President Obama Proposed Increasing the Minimum Wage from $7.25/hr

question 57

Multiple Choice

In 2015, President Obama proposed increasing the minimum wage from $7.25/hr to $10.10/hr. According to theory, what would likely be the result of such an increase?

• A) Some workers would leave the labor market.
• B) Firms would hire more workers.
• C) All workers prior to the wage increase would now earn at least $10.10 per hour.
• D) Unemployment would increase as firms lay off workers.

Calculate the minimum acceptable price for selling or purchasing products based on relevant costs.

Evaluate the profitability of using existing resources versus obtaining new resources.

Understand the role of sunk costs, opportunity costs, and avoidable costs in financial decision-making.

Determine the optimal product mix in situations of limited resources using contribution margin analysis.

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Definitions:

Plaintiff

The party who initiates a lawsuit or legal action against another party (the defendant) in a court of law, alleging harm or infringement of rights.

Superseding Cause

An intervening cause that alters the natural sequence of events and relieves the original party from liability in a legal context.

Causal Chain

A sequence of events where each event is the result of the previous one and causes the next, often used in legal and philosophical arguments.

Unforeseeable

Situations or events that could not have been predicted or expected with reasonable foresight.