Use the Following to Answer Questions

question 199

Multiple Choice

Use the following to answer questions:
-(Table: Total Product of Labor at Debbie's Bakery) Look at the table Total Product of Labor at Debbie's Bakery. Debbie can sell cakes at $10 each. Debbie must pay each worker $30 per day. Now suppose the government imposes a minimum wage law that all bakeries must pay no less than $50 per day. Debbie _____ employment from _____ workers to _____ worker(s) .

• A) reduces; six; one
• B) reduces; six; five
• C) reduces; six; four
• D) increases; one; four

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Definitions:

Federal Unemployment Taxes

Taxes imposed on employers to fund the federal government's oversight and support of state unemployment insurance programs.

Employer

An individual or organization that hires and pays for the services of employees in exchange for their labor.

General Journal Entry

A record in the accounting journal that represents a specific financial transaction, detailing the accounts affected and the amounts involved.

Payroll

The total amount of wages, salaries, bonuses, and deductions a business pays to its employees.