If the Legal Minimum Wage Rate Is Set at $1/hour

question 85

Multiple Choice

If the legal minimum wage rate is set at $1/hour instead of at the equilibrium rate,

• A)employment for inexperienced and marginal workers will tend to fall.
• B)employment of inexperienced and marginal workers will tend to rise.
• C)employment of inexperienced and marginal workers will not be affected.
• D)there is no way to determine how the employment of inexperienced and marginal workers would be affected.

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Definitions:

Weighted-Average Method

The weighted-average method calculates the cost of goods sold and ending inventory value, considering the average cost of all inventory items based on weight.

Equivalent Units

A concept used in cost accounting to standardize units of production, making them comparable despite being in different stages of completion.

Fabricating Department

A section within a manufacturing company where raw materials are assembled or processed into finished products.

Weighted-Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory value based on the average cost of all items available for sale during the period.