Which of the Following Is True

question 317

Multiple Choice

Which of the following is true?

• A) An increase in the minimum wage will reduce the training opportunities available to inexperienced workers.
• B) The minimum wage is an example of a price floor.
• C) Most minimum wage workers are employed part-time, and they are generally either a spouse or a teenage member of a household with an income well above the poverty level.
• D) All of the above are true.

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Definitions:

Standard Hour Plan

A compensation strategy that pays workers extra for work done in less than a predetermined standard time, encouraging efficiency and productivity.

Merit Pay Plan

A compensation strategy that adjusts an employee's pay based on their performance, aiming to incentivize higher levels of productivity and achievement.

Indexed Stock Options

A form of stock option where the exercise price is tied to a benchmark, such as a market index, to adjust for economic changes.

Premium-Priced Options

Financial derivatives whose price is significantly higher than their underlying security, often due to implied volatility or time value.