Some Economists Argue That the Minimum Wage

question 85

Multiple Choice

Some economists argue that the minimum wage:

• A)drives some labor to occur "under the table."
• B)causes some employers to hire undocumented migrants at below-minimum wages.
• C)leads some employers to pay workers cash without telling the government.
• D)All of these are true.

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Definitions:

Budget Line

A graphical representation of all possible combinations of two goods that can be purchased at given prices and within a given budget.

Interest Rate

The percentage at which interest is paid by borrowers for the use of money that they borrow from a lender.

Inflation Rate

The percentage increase in the general level of prices for goods and services over a certain period, reflecting the decreasing purchasing power of money.

Rational Person

An individual who systematically and logically evaluates options to make decisions that maximize their personal benefit or utility.