One Result of the Minimum Wage Is

question 177

Multiple Choice

One result of the minimum wage is

• A) a black market for labor that pays more than the minimum wage.
• B) a black market for labor that pays less than the minimum wage.
• C) decreased job search activity.
• D) a decrease in unemployment among poor and unskilled workers.
• E) an increase in employment among poor and unskilled workers.

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Definitions:

Times Interest Earned

A financial ratio that measures a company's ability to meet its debt obligations by comparing its income before interest and taxes (EBIT) to its interest expenses.

Interest Expense

Interest expense is the cost incurred by an entity for borrowed funds, usually expressed in the form of interest payments on loans, bonds, or credit lines.

Net Income

The remaining earnings of a company once expenses and taxes are subtracted from the gross revenue.

Times Interest Earned Ratio

A financial ratio that measures a company’s ability to meet its interest obligations based on its earnings before interest and taxes (EBIT).