A Legislated Minimum Wage Is Said to Be Binding When

question 64

Multiple Choice

A legislated minimum wage is said to be binding when

• A) it decreases the turnover rate among employees.
• B) it is enforced by legal authorities.
• C) an industry is poorly organized and composed largely of unskilled labour.
• D) it raises wage rates in an industry above the free- market equilibrium level.
• E) it is below an industry's free- market equilibrium wage.

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Definitions:

Periodic Inventory Method

A method of inventory valuation for financial reporting purposes where a physical count of the inventory is performed at specific intervals; costs of goods sold are calculated at the end of the accounting period.