Use the Table Below to Answer the Following Questions

question 41

Multiple Choice

Use the table below to answer the following questions.
Table 6.2.1

-Table 6.2.1 gives the supply and demand schedules for teenage labour in Genoa City. In an unregulated market,

• A)there is no teenage unemployment and the wage rate is $6 per hour.
• B)there is no teenage unemployment and the wage rate is $5 per hour.
• C)teenage unemployment is 400 hours and the wage rate is $6 per hour.
• D)teenage unemployment is 400 hours and the wage rate is $5 per hour.
• E)the minimum wage is $7 per hour.

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Definitions:

Contractual Agreement

A contractual agreement is a legally binding exchange of promises or an agreement between parties that is enforceable by law.

Accruals

Accounting method where revenues and expenses are recorded when they are earned or incurred, regardless of when the cash transaction happens.

Financing

The act of providing funds for business activities, making purchases, or investing, including means such as loans, equity investments, and other financial instruments.

Compensating Balance

A portion of a loan that banks require borrowers to leave in their checking accounts. Effectively increases the bank’s yield. A minimum balance required to compensate banks for their services.