Which of the Following Is a Consequence of Minimum Wage

question 210

Multiple Choice

Which of the following is a consequence of minimum wage laws?

• A)Low skilled workers benefit because minimum wage increases the number of jobs providing low skilled workers with training.
• B)Employers will be reluctant to offer low-skill workers jobs with training.
• C)Producers have an incentive to offer workers non-wage benefits such as health care benefits and convenient working hours rather than a higher wage.
• D)All workers benefit when the minimum wage is increased.

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Definitions:

Straight-Line Depreciation

A method of calculating the depreciation of an asset which spreads the cost evenly over its estimated useful life.

Useful Life

An estimate of the duration over which an asset is expected to be economically viable and operational in a business.

Average Rate of Return

A financial ratio showing the average annual return of an investment over its lifetime, calculated as the total expected return divided by the initial cost of the investment.

Total Income

The sum of all revenue and gains for an entity over a specified period of time.