Which of the Following Statements About the Minimum Wage Is

question 64

Multiple Choice

Which of the following statements about the minimum wage is accurate?

• A) The minimum wage guarantees workers a living wage.
• B) Those earning minimum wage automatically receive COLA adjustments.
• C) Only the federal government can set a minimum wage.
• D) Commissioned sales employees are exempt from minimum wage requirements.
• E) The minimum wage ensures that workers do not live in poverty.

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Definitions:

Stare Decisis

“Standing by the decision” a principle stating that rulings made in higher courts are binding precedent for lower courts.

Watered Stock

Stock that is issued to individuals below its fair market value.

Fair Market Value

The price a willing buyer would pay a willing seller in a transaction where both parties have reasonable knowledge of the relevant facts and neither is under compulsion to act.

No-Par Stock

Shares issued without a nominal or face value, where the value is determined by the price investors are willing to pay.