The Data Shows the Market for Daycare Workers in a Particular

question 82

Multiple Choice

The data shows the market for daycare workers in a particular city:
(quantity of workers in hundreds)

-Refer to the information above to answer this question.Suppose that after the imposition of a minimum wage of $6.50,a number of new daycare centres opened up increasing the demand for workers by 400.In what way would this market be affected?

• A)The wage would increase to $7 and there would be no unemployment.
• B)The wage would remain at $6.50 but there would now be no unemployment.
• C)The wage would remain at $6.50 and there would now be 200 unemployed daycare workers.
• D)The wage would remain at $6.50 and there would now be 200 vacancies.
• E)The wage would drop to $5 and there would be no unemployment.

---

Definitions:

Cost Of Goods Sold

Cost of Goods Sold (COGS) represents the direct costs attributable to the production of the goods sold by a company, including materials and labor costs.

Receivables Turnover

A financial metric that measures how efficiently a company collects cash from its customers by dividing net credit sales by average accounts receivable.

Collection Period

The average number of days it takes for a business to receive payments from its customers after a sale has been made.

Accounts Receivable

Represents the money owed to a company by its customers for goods or services that have been delivered but not yet paid for.