Which of the Following Is a Correct Statement About a Minimum

question 147

Multiple Choice

Which of the following is a correct statement about a minimum wage law?

• A) It reduces costs for employers.
• B) It ensures that anyone who wants a job can get a job with a high enough wage.
• C) It causes prices to rise as producers pay more for labor.
• D) It is a price ceiling law that makes wages higher than the market equilibrium price.
• E) It is a price floor law that forces wages to be lower than the market equilibrium price.

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Definitions:

Spot Exchange Rates

The current exchange rate at which one currency can be immediately exchanged for another currency in the foreign exchange market.

Derivative Fair Value

The current market value of a derivative financial instrument, reflecting potential gains or losses if it were closed out.

Comprehensive Income

Comprehensive Income includes all changes in equity of a company during a period from transactions and other events, excluding transactions with owners.

Call Option

A financial contract giving the holder the right, but not the obligation, to buy a specified quantity of an asset at a predetermined price within a specified time frame.