Use the Following Table to Answer the Questions That Follow

question 145

Multiple Choice

Use the following table to answer the questions that follow.

-If a minimum wage is set at $5.50,what would be the amount of disequilibrium in the labor market?

• A) There would be a labor shortage of 25,515,000.
• B) There would be a labor surplus of 25,515,000.
• C) There would be neither a shortage nor a surplus.
• D) A labor surplus of 25,515,000 would be eliminated because individuals would decide to work in the illegal black market.
• E) A labor surplus of 25,515,000 would increase as individuals find work in the illegal black market.

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Definitions:

Units

In the context of production and inventory, units refer to the individual items or products counted for operational, accounting, or sales purposes.

Sales Commissions

Payments made to sales personnel based on the value or volume of sales they have made, usually a percentage of the sale price.

Net Operating Income

Calculated as revenues minus expenses, excluding taxes and interest, representing the profit generated from normal business operations.

Monthly Sales

The total revenue or the number of units sold by a business in one calendar month.