If the Minimum Wage Was Currently Above the Equilibrium Wage

question 197

Multiple Choice

If the minimum wage was currently above the equilibrium wage, what would a decrease in the minimum wage do to the quantity demanded and quantity supplied of labour?

• A) It would increase both the quantity demanded and the quantity supplied of labour.
• B) It would decrease both the quantity demanded and the quantity supplied of labour.
• C) It would increase the quantity of labour demanded and decrease the quantity supplied.
• D) It would decrease the quantity of labour demanded and increase the quantity supplied.

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Definitions:

Relevance

The quality of information that makes it useful for decision-making by accurately reflecting the financial situation of a business.

Representational Faithfulness

The quality of financial information that ensures it accurately reflects an entity's transactions and events without error or bias.

Financial Reporting

Generating financial statements that provide insight into an organization's economic status to its overseers, stakeholders, and governmental authorities.

Accounting Period

A specific duration of time used for financial reporting, usually a fiscal year or quarter.