In a Competitive Labor Market,a Minimum Wage Law Set Above

question 94

Multiple Choice

In a competitive labor market,a minimum wage law set above the equilibrium wage rate

• A) creates a shortage of labor.
• B) causes equality between the quantity of labor supplied and the quantity demanded.
• C) creates a surplus of labor.
• D) lowers the wage rate paid to workers.
• E) has no impact.

---

Definitions:

Process Costing System

An accounting method used to allocate costs to units of product in processes where the products are indistinguishable from each other.

FIFO Method

"First In, First Out," an inventory valuation method that assumes goods are sold in the order they are acquired.

Inventory Costing

The method used to value inventory, including techniques like FIFO (First In, First Out), LIFO (Last In, First Out), and weighted average cost.

FIFO Method

"First In, First Out" method of inventory valuation where the oldest inventory items are recorded as sold first.