Figure 9-1 This Figure Shows the Effect of a Minimum-Wage Law

question 176

Multiple Choice

Figure 9-1
This figure shows the effect of a minimum-wage law.
-Refer to the Figure 9-1.If there was no minimum wage and then the government instituted a minimum wage of $6,what would happen to employment in this market?

• A) Employment would rise by 10.
• B) Employment would fall by 20.
• C) Unemployment would increase by 10.
• D) Unemployment would increase by 20.

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Definitions:

Dividend

A payment made by a corporation to its shareholders, usually as a distribution of profits.

Retained Earnings

The portion of net income that is kept by a company instead of being paid out as dividends to shareholders, contributing to the company's equity.

Paid-in Capital

The amount of money that a company receives from its shareholders in exchange for shares of stock.

Declaration Date

The date on which a company's board of directors announces its intention to pay a dividend.