From 1981 to 1989, the Nominal Federal Minimum Wage Was

question 8

Multiple Choice

From 1981 to 1989, the nominal federal minimum wage was unchanged.As a result:

• A)The real minimum wage increased because firms paid higher wages to attract workers over time.
• B)The real minimum wage decreased because firms substituted skilled labor for unskilled labor.
• C)The real minimum wage increased due to higher payroll taxes.
• D)The real minimum wage decreased over time due to inflation.
• E)The real minimum wage was unchanged as well.

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Definitions:

At-risk Amount

The maximum amount of money an investor could lose in an investment, often used in the context of limiting losses in tax sheltered investments.

Passive Activity

Economic activities in which the taxpayer does not materially participate, often associated with rental properties or certain business investments.

Ordinary Loss

A loss incurred in the normal operation of a business, which can be used to reduce other taxable income on an owner's tax return.

Itemized Deductions

Expenses that taxpayers can subtract from their taxable income, detailed on Schedule A of the tax return.