On April 1, 2009, in the Middle of a Recession

question 124

Multiple Choice

On April 1, 2009, in the middle of a recession, the Government of Ontario increased the provincial minimum wage from $8.75 to $9.50. What would the likely effect of this policy be?

• A) The higher wage will increase the supply of labour, offsetting the effects of the recession.
• B) Low-income workers will be better able to survive the recession at the new, higher wage rate.
• C) Both the leftward shift in the labour demand curve and the higher minimum wage will lead to an increase in the unemployment rate.
• D) More people will be hired at the higher wage rate, offsetting the effects of the recession.

Know the legal and contractual aspects of bonds, including the role and content of a bond indenture.

Comprehend how bonds are converted into common stock, including the accounting treatment and the impact on financial statements.

Understand the computation and implications of the times interest earned ratio.

Grasp the tax implications of corporate bond interest and dividends.

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Definitions:

Reasoning Skills

The capability to think logically and solve problems through systematic analysis and evaluation.

Intellectual Potential

An individual's capacity to think, understand, learn, and make judgments or have ideas.

Nature Vs. Nurture

A debate concerning the relative importance of an individual's innate qualities versus personal experiences in determining or causing individual differences in physical and behavioral traits.

Correlation

A measure of the relationship between two variables, indicating how one may predict or relate to the other.