Figure 28-1 -Refer to Figure 28-1. If There Was No Minimum Wage

question 146

Multiple Choice

Figure 28-1
-Refer to Figure 28-1. If there was no minimum wage and then the government instituted a minimum wage of $6, what would happen to employment in this market?

• A)Employment would rise by 10.
• B)Employment would fall by 20.
• C)Unemployment would increase by 10.
• D)Unemployment would increase by 20.

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Definitions:

Net Income

The total revenue minus total expenses, indicating the profit made by a business over a period.

Net Cash Flow

The difference between cash inflows and outflows from operational, investing, and financing activities during a specific period.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation and a claim on part of the corporation's profits.

Dividends

Payments made by a corporation to its shareholders, usually as a distribution of profits.