Economists Generally Agree That Sufficiently High Minimum Wage Laws

question 94

Multiple Choice

Economists generally agree that sufficiently high minimum wage laws:

• A) cause unemployment.
• B) help lower the structural unemployment rate.
• C) decrease the labour force participation rate.
• D) make an opportunity for discouraged workers.

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Definitions:

Parent's Share

The proportion of equity held in a subsidiary by the parent company, often representing controlling interest.

Goodwill

An intangible asset that arises when a company acquires another company for a price higher than the fair value of its net identifiable assets.

Consolidation Approach

A method in accounting where the financial statements of a parent company and its subsidiaries are presented as one.

Parent-Company Method

A method of accounting wherein investments in subsidiaries are shown at cost or at fair value within the parent company's financial statements.