If Congress Voted to Eliminate the Minimum Wage,which of the Following

question 12

Multiple Choice

If Congress voted to eliminate the minimum wage,which of the following would most likely occur?

• A) Decrease in unit costs and an upward shift of the aggregate supply curve
• B) Decrease in unit costs and an upward movement along the aggregate supply curve
• C) Decrease in unit costs and a downward shift of the aggregate supply curve
• D) Increase in unit costs and an upward shift of the aggregate supply curve
• E) Increase in unit costs and an upward movement along the aggregate supply curve.

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Definitions:

Marginal Cost

The increase in cost that arises from producing one additional unit of a good or service.

Marginal Revenue

The additional income generated from selling one more unit of a good or service.

Marginal Cost

The cost of producing one additional unit of a product or service.

Output

The total amount of goods and services produced by an economic system, company, or sector within a certain period.