Ben Is Willing to Work for $4/hour and an Employer

question 139

Multiple Choice

Ben is willing to work for $4/hour and an employer is willing to hire Ben for $7/hour. Which of the following statements is TRUE?

• A) A minimum wage of $7.50/hour would prevent this mutually beneficial exchange.
• B) Minimum wages do not prevent mutually beneficial exchanges.
• C) A minimum wage of $4.50/hour would prevent this mutually beneficial exchange.
• D) A minimum wage of $3.50/hour would prevent this mutually beneficial exchange.

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Definitions:

Supply Chain

The network of all the individuals, organizations, resources, activities, and technology involved in the creation and sale of a product, from the delivery of source materials from the supplier to the manufacturer, and eventually to the customer.

Decision-making Framework

A structured approach or set of guidelines to navigate and systematically make decisions, often involving identifying options, analyzing consequences, and selecting the best course of action.

Four Major Drivers

Refers to the primary forces or factors that drive decision-making, strategy, and success in businesses or other organizations, though the specific drivers can vary by context.

Absentee Landlord

A property owner who does not live on-site or participate actively in managing their rental property.