Which of the Following Is Correct

question 30

Multiple Choice

Which of the following is correct?

• A)Studies of the effects of the minimum wage typically find that a 10 percent increase in the minimum wage raises the average wage of teenagers by 10 percent.
• B)The drop in teenage employment caused by a 10 percent increase in the minimum wage is not significant.
• C)The minimum wage is more often binding for teenagers than for other members of the labor force.
• D)All firms consistently enforce minimum-wage laws.

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Definitions:

Political Influence

The impact that individuals, groups, or organizations have on political decisions, policies, and the legislative process.

Profit-Maximizing

A strategy or process by which a firm decides on the price and output level that leads to the highest profit.

Total Revenue

The total amount of money received by a company for goods sold or services provided during a certain time period.

Monopoly Power

The ability of a single seller in a market to control prices and exclude competition, often leading to inefficiencies and consumer harm.