Cole Is a Minimum Wage Employee in Santa Fe,NM,where the Minimum

question 46

Multiple Choice

Cole is a minimum wage employee in Santa Fe,NM,where the minimum wage is $10.51 per hour.His employer claims that since the Federal minimum wage is $7.25 per hour,Cole should only receive the Federal amount.What is the correct answer in this situation?

• A) The employer has the discretion to pay either the Federal or the state-designated minimum wage.
• B) The employer may choose to pay less than the state-designated minimum wage, based on the employee's qualifications and job description.
• C) The employer is correct that the Federal minimum wage overrules the state wage.
• D) The employer must pay the state-designated minimum wage for the area.

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Definitions:

NDP

Net Domestic Product (NDP) refers to the total value of all goods and services produced within a country in a specific time period, minus the total value of the goods and services used up in production.

GDP Deflator

An indicator of the price levels for all newly produced domestic final goods and services within an economy, utilized for transforming nominal GDP into real GDP.

Inflation

A universal surge in prices and a dip in the value of monetary assets.

Real GDP

The measure of a country's economic output adjusted for price changes or inflation.