How May the Existence of a Minimum Wage Raise Unemployment

question 18

Essay

How may the existence of a minimum wage raise unemployment and thus increase income disparities. Use a diagram to illustrate your answer.

---

Definitions:

Payout Ratio

A financial metric that measures the proportion of earnings a company pays to its shareholders in the form of dividends, typically expressed as a percentage.

Retained Earnings

Retained earnings refer to the cumulative amount of net income a company retains, rather than distributing it to shareholders as dividends.

Net Income

The remainder of a company's total revenue after deducting taxes, expenses, and any other costs.

Shareholders' Equity

The portion of the company's assets that belongs to the shareholders after all liabilities have been subtracted.