An Increase in the Minimum Wage Will Decrease Employment More

question 15

Multiple Choice

An increase in the minimum wage will decrease employment more when

• A) the supply of labor is more elastic.
• B) the uncovered sector is small.
• C) the demand for labor is inelastic.
• D) All of the above will cause the minimum wage to decrease employment more.

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Definitions:

Operating Activities

Business activities related directly to the production and delivery of goods and services, which are reflected in a company's income and cash flow from operations.

Financing Activities

Transactions related to raising capital and repaying investors, including issuing equity, obtaining loans, and repaying debt, as part of a company's cash flow statement.

Organizing Activities

Activities aimed at arranging or structuring resources and operations, often within the context of management and business operations.

Cash Flow

The total amount of money being transferred into and out of a business, especially affecting liquidity.