Refer to Figure 1

question 9

Multiple Choice

Refer to Figure 1.This would explain the difference between the nominal minimum wage and the real minimum wage.

• A)Unemployment
• B)Changes in the labor law
• C)Inflation
• D)The Fair Labor Standards Act

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Definitions:

Credit Sales

Transactions where goods or services are sold by a business but payment is received at a later date.

Cash Sales

Transactions in which payment for goods or services is made at the time of sale, typically in cash form.

Manufacturing Costs

Costs associated with the production of goods, including direct materials, direct labor, and manufacturing overhead.

Insurance Expense

The cost incurred by a business for insurance policies to protect against various risks.