-In the Figure Above, If the Minimum Wage Is $2

question 52

Multiple Choice

-In the figure above, if the minimum wage is $2 per hour, then

• A) the quantity of labor supplied is 4 million hours and the quantity of labor demanded is 2 million hours.
• B) the quantity of labor demanded is 4 million hours and the quantity of labor supplied is 2 million hours.
• C) unemployment is 1 million hours.
• D) the quantity of labor supplied is 3 million hours and the quantity of labor demanded is 3 million hours.

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Definitions:

Federal Income Tax

The tax levied by the IRS on the annual earnings of individuals, corporations, trusts, and other legal entities.

Withholdings

The portion of an employee's earnings that is deducted and sent directly to the government by the employer for tax purposes.

Salaries Expense

The total amount paid to employees in salary form over a specified accounting period, considered an operating expense.

Notes Payable

Short-term or long-term liabilities representing amounts owed for borrowed funds, documented by a promissory note.