Which of the Following Statements Accurately Characterizes the Effects of Minimum-Wage

question 450

Multiple Choice

Which of the following statements accurately characterizes the effects of minimum-wage laws?

• A)Some workers who might have been employed at a lower wage become unemployed.
• B)Those workers who remain employed benefit from a higher wage.
• C)The effects of minimum-wage laws depend strongly on the elasticity of demand.
• D)All of the above accurately characterize the effects of minimum-wage laws.

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Definitions:

Policymaking Decisions

Choices and judgments made by governing bodies or officials regarding the establishment of rules, laws, or regulations intended to manage public affairs.

Corporate Affairs

Activities related to the operation and management of a corporation, including its legal, financial, and communications strategies.

Prudent Business Judgment

Decision-making by business leaders that is cautious, reasonable, and in the best interest of the organization, based on available information.

Business Judgment

The decision-making process undertaken by company directors or officers that is characterized by a reasonable level of discernment and is in the interest of the company.