If the Minimum Wage Is Set Above the Market Wage

question 274

Multiple Choice

If the minimum wage is set above the market wage

• A)the quantity of labor supplied will be below the quantity of labor demanded.
• B)unemployment will rise.
• C)highly-skilled workers will have a harder time finding jobs.
• D)All of the above are correct.

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Definitions:

Variable Administrative Expense

Expenses that fluctuate in total in direct proportion to changes in activity level, such as sales volume or production output.

Gross Margin

The difference between revenue and cost of goods sold, divided by revenue, expressed as a percentage. It represents the percentage of total sales revenue that the company retains after incurring the direct costs associated with producing the goods and services sold.

Variable Selling Expense

Costs that vary directly with the volume of sales, such as commissions, shipping charges, and promotional expenses.

Cost of Goods Sold

The financial outlays directly associated with the production of a company's sold merchandise.