If the Minimum Wage Exceeds the Equilibrium Wage,then

question 3

Multiple Choice

If the minimum wage exceeds the equilibrium wage,then

• A)the quantity demanded of labor will exceed the quantity supplied.
• B)the quantity supplied of labor will exceed the quantity demanded.
• C)the minimum wage will not be binding.
• D)there will be no unemployment.

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Definitions:

Straight-Line Method

An accounting method of depreciating fixed assets evenly over their useful lives.

Depreciation Expense

Depreciation expense is the systematic allocation of the cost of a tangible asset over its useful life, reflecting the asset's consumption, wear and tear, or obsolescence.

Salvage Value

The estimated residual value of an asset at the end of its useful life, reflecting what it can be sold for or its scrap value.

Straight-Line Method

A depreciation method where an equal amount of depreciation is charged for each year of the asset's useful life.