Minimum Wage Laws

question 396

Multiple Choice

Minimum wage laws

• A)benefit all unskilled workers.
• B)create unemployment, but if demand is relatively elastic, the unemployment effects will be minor.
• C)may help the nonpoor, such as teenagers from wealthy families.
• D)reduce poverty by reducing unemployment.

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Definitions:

Discount Rate

The interest rate used to discount future cash flows to present value, often used in capital budgeting.

Annual Net Cash Inflow

The total amount of money that flows into a company annually after all cash outflows are subtracted.

Payback Period

The duration required for an investment to produce a sum of income or cash that matches the investment's initial cost.

Useful Life

The estimated time period that an asset is expected to be usable for its intended purpose.