Which of the Following Is Not a Consequence of Minimum

question 205

Multiple Choice

Which of the following is not a consequence of minimum wage laws?

• A)Low-skilled workers are hurt because minimum wage reduces the number of jobs providing low-skilled workers with training.
• B)Employers will be reluctant to offer low-skilled workers jobs with training.
• C)Producers have an incentive to offer workers non-wage benefits such as health care benefits and convenient working hours rather than a higher wage.
• D)Some workers benefit when the minimum wage is increased.

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Definitions:

Pre-tax Cost

The cost of an investment or expense before the effect of taxes is taken into account.

Flotation Costs

The expenses incurred by a company in issuing new securities, including underwriting, legal, and registration fees.

Cost of Equity

The theoretical compensation a company pays to its equity investors for the risk involved in investing in the firm.

Beta

A measure of the volatility, or systematic risk, of a security or portfolio compared to the market as a whole.