If the Minimum Wage Is Set Too High, in Some

question 101

Multiple Choice

If the minimum wage is set too high, in some labor markets we can expect to see

• A) a shortage of labor.
• B) an increase in on-the-job training.
• C) a surplus of labor.
• D) a decline in wage costs.

Examine the factors influencing firm's short-run supply decisions.

Understand the equilibrium concept in a competitive market.

Calculate economic profit or loss based on given financial data of a firm.

Recognize the significance of average total costs in a firm’s production decisions.

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Definitions:

Assets and Liabilities

The resources owned by a company or individual that have value (assets) and the obligations owed to others (liabilities).

Common Shares

Units of ownership in a corporation, giving holders a proportion of the voting rights and potential dividends.

Functional Currency

The currency that most influences sales prices, labor, and material costs, and is often the currency in which most of the business transactions are denominated.

Translation Rate

The exchange rate used to convert the financial statements of a foreign subsidiary to the reporting currency of the parent company.