Which Statement Best Explains the Effect of a High-Binding Minimum

question 131

Multiple Choice

Which statement best explains the effect of a high-binding minimum wage

• A)It impacts no one.
• B)It lowers the productivity of workers.
• C)It raises the cost of labour to firms.
• D)It lowers the productivity of workers and raises the cost of labour to firms.

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Definitions:

Time Utility

The value added to products or services by making them available at the right time to meet consumer needs.

Multitouch

A technology that enables a surface (such as a touchscreen) to recognize the presence of more than one point of contact with the surface simultaneously.

Goodwill

The intangible asset that arises when a business is acquired for more than the fair value of its visible, tangible assets; often related to the brand reputation, customer loyalty, and other factors not directly quantifiable.

Production

The act of producing goods and services by merging workforce, materials, and technology.