Which of the Following Is a Reason Why Wages Might

question 21

Multiple Choice

Which of the following is a reason why wages might stay above the equilibrium rate?

• A) Minimum-wage legislation
• B) Contracts with labor unions
• C) Efficiency wages paid to employees
• D) All of these are reasons why wages may not fall below equilibrium.

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Definitions:

Cost of Goods Sold

The direct expenses related to the creation of products sold by a business, including costs for materials and labor.

Sales

Revenue generated from the selling of goods or services within a specific period.