Which of the Following Is True of Minimum-Wage Laws

question 302

Multiple Choice

Which of the following is true of minimum-wage laws?

• A)They affect skilled workers' wages.
• B)They create above-equilibrium wages for some unskilled workers.
• C)They create a shortage of unskilled labor.
• D)They negatively affect the employment of skilled workers.

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Definitions:

Transaction Cost

The expenses incurred when buying or selling goods or services, including fees, communication charges, and other financial costs.

Management Cost

Expenses associated with the administration and operation of a business, including salaries of managers and costs of strategic activities.

Supplier Viability

The ability of a supplier to continue delivering products or services over time, maintaining financial stability and operational capability.

Mission-Critical Products

Goods or services that are essential for the successful operation of a business or organization, without which the entity could not function effectively.