A Minimum Wage

question 234

Multiple Choice

A minimum wage

• A) is a price ceiling in the labor market.
• B) changes the demand for labor..
• C) is an effective way of increasing employment.
• D) is a price floor in the labor market.

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Definitions:

Capital

Financial assets or resources that businesses or individuals use to fund operations, investments, and growth.

Ordinary Business Income

Income earned from the normal business operations, subject to regular tax rates.

Subchapter S

A section of the Internal Revenue Code that allows corporations to pass income directly to shareholders and avoid double taxation while retaining the benefits of corporate structure.

Schedule K-1

A tax form used to report a beneficiary's share of income, deductions, and credits from a partnership, S corporation, or trust.