Some Economists Argue That the Minimum Wage

question 6

Multiple Choice

Some economists argue that the minimum wage:

• A) leads some employers to pay workers cash and not report this labor to the government.
• B) causes an increase in the quantity of labor demanded.
• C) should only apply to government workers.
• D) is more important to workers in rural areas.

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Definitions:

Interest Rates

Interest rates are the cost of borrowing money or the reward for saving, typically expressed as a percentage of the principal, which borrowers pay to lenders or financial institutions.

Inverted Yield Curve

A situation in the bond market where long-term debt instruments have a lower yield than short-term debt instruments, often seen as an indicator of economic recession.

Long-term Interest Rates

Interest rates applied to loans or debt securities with longer maturity dates, generally over ten years.

Forward Interest Rate

An interest rate agreed upon today for a loan that will begin at a future date, used to hedge against interest rate fluctuations.