Because Minimum Wage Is a Price Floor

question 165

Multiple Choice

Because minimum wage is a price floor

• A)it will be set below the market equilibrium price.
• B)it will create a deadweight loss.
• C)it will increase the number of jobs available in the labor market.
• D)it will maximize consumer surplus.

Distinguish between items recorded and not recorded by an accountant during partnership liquidation.

Understand the difference between fiscal and calendar years in accounting.

Comprehend the principles of cash and accrual basis of accounting.

Recognize the purpose and principles of adjusting entries in accounting.

---

Definitions:

Competitive Price

A pricing strategy where the price of a product or service is set based on the prices of competing products or services in the market.

Consumer Surplus

The discrepancy between what buyers are inclined to pay for a service or product and their actual expenditure.

Producer Gains

The profits or positive financial outcomes that producers experience from selling goods or services, often due to pricing or market conditions.

Deadweight Loss

Refers to the loss of economic efficiency when the equilibrium for a good or service is not achieved, leading to a net welfare loss.