What Would Be Associated with the Type of Unemployment Created

question 52

Multiple Choice

What would be associated with the type of unemployment created by the minimum-wage law?

• A) Greg quits his job as a grocery cashier because he would rather work at the library.
• B) Fred decides to close his Thai restaurant because he cannot afford to pay workers the going wage.
• C) In hopes of earning a higher income,Bruce goes back to trade school to get further training.
• D) Liz pays the workers for her plumbing and heating company more than the equilibrium wage because she believes it will make them work harder.

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Definitions:

Necessary Cash

The minimum amount of cash required by a company to carry out its day-to-day operations.

Contra Asset Account

An account on a company's balance sheet representing deductions from the gross amount of an asset, such as accumulated depreciation on fixed assets.

Allowance for Doubtful Accounts

An accounting method used to estimate the portion of a company's receivables that may not be collected, reducing the accounts receivable balance accordingly.

Uncollectible Accounts

Uncollectible accounts are receivables that a company deems uncollectable and likely will not be recovered, often written off as a bad debt expense.