An Increase in the Minimum Wage Will Tend to Cause

question 32

Multiple Choice

An increase in the minimum wage will tend to cause which of the following?

• A)an upward shift in the WS curve
• B)a downward shift in the WS curve
• C)an upward shift in the PS curve
• D)a downward shift in the PS curve
• E) none of the above

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Definitions:

Inventory Holding Cost

The total cost associated with storing and managing inventory over a certain period, including warehousing, insurance, depreciation, and obsolescence costs.

Marginal Subcontracting Cost

The extra expense faced when outsourcing an additional unit of production or service.

Layoff Cost

Expenses associated with terminating employees, which may include severance pay, benefits continuation, and other related costs.

Hiring And Training Cost

Expenses associated with recruiting new employees and providing them with the necessary training to perform their job duties.