The Minimum Wage Is A

question 33

Multiple Choice

The minimum wage is a:

• A) wage ceiling.
• B) positive externality.
• C) price floor.
• D) price ceiling.

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Definitions:

Merchandise

Merchandise encompasses the goods and products that a retail business purchases to then sell to its customers.

Lower of Cost

An accounting principle requiring that inventory be recorded at the lower of its historical cost or market value if the market value drops below cost.

Net Realizable Value

The estimated selling price in the ordinary course of business, minus the estimated costs of completion and the estimated costs necessary to make the sale.

Selling Price

The amount of money a buyer pays to purchase a product or service from a seller.