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:

Debited

A term used in accounting to indicate a transaction that increases an asset or expense account, or decreases a liability or equity account.

Cash Account

An account that records all transactions involving cash receipts and cash payments.

Debit

A record in accounting that causes assets to grow or liabilities to shrink on a firm's balance sheet.

Account Title

The name given to an account in the general ledger that reflects the type of asset, liability, equity, revenue, or expense it represents.