Select the Normative Statement That Completes the Following Sentence: If

question 29

Multiple Choice

Select the normative statement that completes the following sentence: If the minimum wage is raised:

• A) cost per unit of output will rise.
• B) workers will gain their rightful share of total income.
• C) the rate of inflation will increase.
• D) profits will fall.

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Definitions:

Investment in Grub

An allocation of resources into a project or company named Grub, expecting future returns.

Equity Method

An accounting technique used by firms to assess the profits earned through their investments in other companies by recognizing their share of the earnings.

Cost Method

An accounting method used to record investments at their original purchase cost.

Consolidated Net Income

Consolidated net income refers to the total earnings of a parent company and its subsidiaries after taxes and expenses, adjusted for minority interests.