Suppose You Were to Hear a Politician Defend the Minimum

question 41

Multiple Choice

Suppose you were to hear a politician defend the minimum wage on the grounds that workers would be happier and more productive with a higher minimum wage, you would know this person to be relying on the ____ argument.

• A)macroeconomic
• B)elasticity
• C)work effort
• D)consumer and producer surplus

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Definitions:

Operating Cash Flow

A measure of the amount of cash generated by a company's normal business operations over a period of time.

Retained Earnings

Retained earnings represent the portion of a company's profit that is retained within the business rather than distributed to shareholders as dividends, often used for reinvestment.

Dividend

A payment made by a corporation to its shareholders, usually in the form of cash or stock, from its earnings.

Loss

The reduction in the financial valuation of an investment, or when expenses exceed the income or total amount invested.