The Cost of the Mandated Minimum Wage Is Most Likely

question 13

Multiple Choice

The cost of the mandated minimum wage is most likely to be borne by the:

• A)high income taxpayers who must pay the taxes to finance the program.
• B)consumers who purchase the goods produced by unskilled workers.
• C)businesses whose profits will fall due to the higher wage rates.
• D)government which pays the difference between the equilibrium and the minimum wage.

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Definitions:

Two-factor Theory

A concept in psychology that proposes that emotional experiences arise from a combination of a state of physiological arousal and a cognitive interpretation of that arousal.

James-Lange Theory

A theory of emotion that suggests emotions occur as a result of physiological reactions to events.

Cannon-Bard Theory

A theory in psychology suggesting that emotional experiences occur simultaneously with physiological responses, rather than one causing the other.

Tranquilizing Drugs

Medications used to reduce tension or anxiety, often by depressing central nervous system activity.