Use the Following to Answer Questions

question 247

Multiple Choice

Use the following to answer questions:
Figure: The Demand for Bricklayers
-(Figure: The Demand for Bricklayers) Look at the figure The Demand for Bricklayers. The equilibrium market wage for bricklayers is $100 a day, but a minimum wage of $130 a day for bricklayers is set by the government. As a result:

• A) six workers will now be hired by the firm.
• B) three workers who otherwise would have been employed are now unemployed.
• C) all bricklayers are better off.
• D) construction firms will shut down.

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Definitions:

Personal Liability

The legal responsibility of an individual to fulfill obligations or debts out of their own assets.

S Corporations

A unique status enabling small businesses to transfer corporate profits, losses, deductions, and tax credits directly to their shareholders for the purpose of federal taxation.

Shareholders

Persons or entities that hold ownership interest in a corporation through stock, participating in its profits and decisions.

Personal Income Tax

A tax levied by government on individuals or households based on their total yearly income from all sources.