Increases in the Minimum Wage Can Help Unions by

question 30

Multiple Choice

Increases in the minimum wage can help unions by

• A) increasing the welfare of non-union workers.
• B) increasing the demand for labor.
• C) increasing costs faced by employers.
• D) increasing the cost of substituting non-union labor for union labor.

---

Definitions:

Residual Income

The income that remains after deducting all required costs of capital from the operating income.

Imputed Interest

The interest that is considered or assumed to be charged on an interest-free loan or bond, often for tax calculations.

Residual Income

The income that remains after subtracting all the costs of capital from the net operating income.

Net Operating Income

Earnings before interest and taxes (EBIT), a measure of a company's profitability from operations.