The Federal Minimum Wage Is

question 2

Multiple Choice

The federal minimum wage is:

• A)not likely an efficiency wage because it does not attract high quality workers.
• B)likely an efficiency wage because it prevents firms from hiring unskilled workers and lowers it total cost of production.
• C)likely an efficiency wage because it lowers the costs of searching for new workers.
• D)not likely an efficiency wage because firms would attempt to earn higher profits without any government intervention.

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Definitions:

Database

A structured set of data held in a computer, especially one that is accessible in various ways.

Amortized

The process of gradually paying off a debt or spreading the cost of an intangible asset over its useful life for accounting and tax purposes.

Common Stock

A type of security that represents ownership in a corporation, giving holders the right to vote on corporate matters and receive dividends.