Those That Lose from an Increase in the Minimum Wage

question 21

Multiple Choice

Those that lose from an increase in the minimum wage are

• A)all workers.
• B)those workers who keep their jobs.
• C)employers.
• D)consumers who pay lower prices for goods.

---

Definitions:

Small Stocks

These are shares of companies with a relatively small market capitalization, often considered to be more volatile but potentially offering higher returns compared to larger companies.

Long-Term Bonds

Bonds with a longer maturity period, typically more than 10 years, offering potentially higher yields but increased interest rate risk.

Treasury Bill

A short-term government security issued at a discount from the face value and pays no interest before maturing at its face value.

Effective Annual Rate

The interest rate on a loan or investment, adjusted for the effect of compounding over a one-year period.