A Minimum Wage Impacts the Labor Market by Causing

question 85

Multiple Choice

A minimum wage impacts the labor market by causing:

• A) An increase in the quantity of labor supplied and a decrease in the quantity of labor demanded.
• B) A decrease in both the quantity of labor supplied and the quantity of labor demanded.
• C) An increase in both the quantity of labor supplied and the quantity of labor demanded.
• D) A decrease in the quantity of labor supplied and an increase in the quantity of labor demanded.

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Definitions:

Depreciation Expense

The portion of the cost of a fixed asset that is considered consumed during its period of use by a business.

Prepaid Expenses

Costs incurred before receiving goods or services that are expected to be provided later.

Accounts Receivable

Funds that are due to a company from its customers for goods or services that have been delivered or sold but not yet paid for.

Inventories

are the raw materials, work-in-progress products, and finished goods that are considered to be the portion of a business's assets that are ready or will be ready for sale.