A Minimum Wage That Is Set Below a Market's Equilibrium

question 135

Multiple Choice

A minimum wage that is set below a market's equilibrium wage will result in

• A) an excess demand for labor,that is,unemployment.
• B) an excess demand for labor,that is,a shortage of workers.
• C) an excess supply of labor,that is,unemployment.
• D) None of the above is correct.

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Definitions:

Budgetary Control

The process of comparing actual financial performance with the budgeted amounts and analyzing the differences to make informed business decisions.

Planned Objectives

Specific goals set by an organization or individual that are intended to be achieved within a certain timeframe through planned actions.

Responsibility Centers

Responsibility centers refer to segments within an organization for which individual managers are accountable, focusing on revenue, cost, profit, or investment.

Controllable Cost

A cost over which a manager has control.