Supporters of Raising the Minimum Wage Argue That Minimum-Wage Laws

question 28

Multiple Choice

Supporters of raising the minimum wage argue that minimum-wage laws are

• A)a tax-free way to help the working poor.Businesses bear the burden of paying higher wages, not the government.
• B)better than the Earned Income Tax Credit (EITC) in targeting the working poor.The EITC may benefit teenagers from middle-class families who work summer jobs at the minimum wage.
• C)better than in-kind transfers such as food stamps in providing food rather than unhealthy items such as drugs or alcohol.
• D)a way to increase employment of those likely to earn the minimum wage.

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Definitions:

Bond Redemption

The process of repaying the principal amount of a bond at its maturity date.

Carrying Value

The book value of an asset on a company's balance sheet, calculated as the asset’s original cost minus accumulated depreciation and impairment charges.

Face Value

The nominal value of a security as stated by the issuer, often associated with bonds or par value of stocks.

Bond Issuance

The process by which a government or corporation raises funds by selling bonds to investors.