If the Minimum Wage Is Above the Equilibrium Wage Rate,then

question 31

Multiple Choice

If the minimum wage is above the equilibrium wage rate,then an increase in the minimum wage ________ employment and ________ unemployment.

• A) increases; increases
• B) increases; decreases
• C) decreases; increases
• D) decreases; decreases
• E) does not change; increases

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Definitions:

Factory Supervisor

An individual responsible for overseeing the day-to-day operations within a manufacturing facility, ensuring production targets and quality standards are met.

Machine Operator

A machine operator is a person who operates equipment and machinery in manufacturing or production settings, monitoring and controlling processes.

Variable Costing

An accounting method that only includes variable costs (costs that vary with production levels) in product costs and treats fixed costs as period costs expensed in the period incurred.

Manufacturing Margin

The difference between the sales revenues generated from manufactured goods and the cost of goods sold, indicating the profitability of production.