Use the Figure Below to Answer the Following Questions

question 101

Multiple Choice

Use the figure below to answer the following questions.

Figure 6.2.1
-Refer to Figure 6.2.1. If the minimum wage is set at $2 per hour, what is the level of unemployment in millions of hours?

• A)50
• B)40
• C)20
• D)10

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Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term and long-term obligations.

External Financing Need

The gap between the funding a firm needs for its operations and investments, and the amount it can generate internally, implying the need to seek external funding.

Projected Growth Rate

An estimate of the rate at which a company's earnings or revenues are expected to grow in the future.

Sales Increases

A measurement of the rise in a company's sales over a specific period, indicating growth in business operations.