A Minimum Wage

question 198

Multiple Choice

A minimum wage

• A)increases the number of unskilled workers who are employed.
• B)increases wages to all unskilled workers.
• C)increases the wages paid to unskilled workers who are employed.
• D)increases cyclical unemployment.

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or output over the short term, such as rent or salaries.

Variable Cost

Expenses that change in proportion to the amount of production or output levels.

Sensitivity Analysis

A technique used to determine how different values of an independent variable affect a particular dependent variable under a given set of assumptions.

Fixed Costs

Expenses that do not change with the amount of goods or services produced, such as rent, salaries, or insurance.