Someone Using the Reasoning Process Consistent with the Impartial Spectator

question 58

Multiple Choice

Someone using the reasoning process consistent with the impartial spectator tool would argue that the minimum wage is a:

• A) bad policy since, based on one's reasoned judgment, it will cause unemployment.
• B) good policy since based on one's reasoned judgment, it will raise one's wage.
• C) bad policy because, based on one's reasoned judgment, it interferes with the market.
• D) good policy because, based on one's reasoned judgment, it would lead to the greatest good for the greatest number.

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Definitions:

Par Value

The face value of a share of stock, as stated in the corporate charter, which may be unrelated to its market value.

No-Par Value Stock

Stock issued without a specified face value but which may have a stated value assigned by the company.

Stated Value

The value assigned to no-par-value stock by the board of directors of a company, which can then be used as the basis for accounting and legal purposes.

Dividends in Arrears

Unpaid dividends on cumulative preferred stock, which must be paid out before any dividends can be issued on common shares.