The Minimum Wage Is an Ineffective Antipoverty Measure for All

question 70

Multiple Choice

The minimum wage is an ineffective antipoverty measure for all EXCEPT which of the following reasons?

• A) The wage ceiling created by minimum wage laws falls below the equilibrium price,producing a shortage of labor.
• B) The wage mandated by law often exceeds the value created by low-skill workers,resulting in a move away from labor-intensive processes.
• C) The wage floor created by minimum wage laws lies above the equilibrium price,producing a surplus of labor.
• D) Increased wages can force small businesses,who are less able to adapt to changes in costs,to close their operations,reducing the total quantity of jobs.
• E) An increase in wages may cause employees to lose working hours,resulting in a net change in pay that is negative.

Understand how bond premiums and discounts affect the selling price and interest expense.

Know how different financing plans affect a corporation's net income and earnings per share.

Understand journal entry preparation for bond transactions, including issuance, interest payment, and amortization.

Comprehend the criteria for classifying leases as either operating or capital and the implications for financial reporting.

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Definitions:

Prices

The charge for acquiring a specific good or service.

Marginal Revenue

The revenue boost a firm experiences from the sale of an additional unit of a product or service.

Burritos

A Mexican dish consisting of a wheat flour tortilla rolled or folded around a filling, typically including beans, cheese, meat, and rice.

Marginal Revenue

The added financial gain received from selling an additional product or service unit.