Which of the Following Statements About the Minimum Wage Is

question 48

Multiple Choice

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

• A) The minimum wage has not had any impact on income inequality.
• B) Adjusting for inflation, the real minimum wage has fallen in the last 30 years.
• C) Because the minimum wage has been increased many times in the last 30 years, income inequality is now lower than it was in the mid-20^th century.
• D) The minimum wage tends to create inflation, which benefits the wealthy more than the poor.

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Definitions:

Cash Dividends

Payments made by a company out of its profits to its shareholders, usually in the form of cash.

Statement of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows and outflows a company receives from its ongoing operations, investment, and financial activities.

Noncash Investing

Transactions that involve the exchange of non-monetary assets or liabilities for other non-monetary assets or liabilities, without the use of cash.

Net Increase in Cash

The total change in cash and cash equivalents indicating the difference between cash inflows and outflows over a period.