Who Loses and Who Gains from the Minimum Wage

question 3

Multiple Choice

Who loses and who gains from the minimum wage?

• A) Losers are all workers and gainers are all firms.
• B) Losers are all firms and gainers are all workers.
• C) Losers are all firms and some workers, while gainers are other workers.
• D) Gainers are some firms and all workers, while losers are some firms.
• E) Gainers are some firms and some workers, while losers are other firms and other workers.

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Definitions:

Contribution

An amount of money or assistance given to support a cause or for a common purpose.

Compounded Annually

The method of computing interest that includes the original principal amount and the interest accrued over prior periods each year.

Deferred Annuity

An annuity contract that delays payments until the investor elects to receive them, often until retirement.

Payments

Amounts of money paid by one party to another, either as part of a one-time transaction or in installments over time.