One Advantage of a Wage Subsidy Over a Minimum Wage

question 62

Multiple Choice

One advantage of a wage subsidy over a minimum wage is the fact that:

• A) the wage subsidy will not increase work effort.
• B) a wage subsidy will be more target efficient than a minimum wage.
• C) the wage subsidy will reduce unemployment among the working poor.
• D) All of the above.

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Definitions:

Voluntary Restriction

Voluntary restriction refers to limitations or constraints that an organization chooses to impose on itself, often related to its operations or the use of its assets, not mandated by external regulations.

Retained Earnings

The accumulated net income of a company that is retained and not distributed to shareholders as dividends.

Net Loss

The result when a company's expenses exceed its revenues during a specific period, indicating negative profitability.

Cash Dividends

Payments made by a corporation to its shareholder members. It represents the share of earnings distributed.