There Are Several Criticisms of the Minimum Wage

question 204

Multiple Choice

There are several criticisms of the minimum wage.Which of the following is not one of those criticisms? The minimum wage

• A)often hurts those people who it is intended to help.
• B)results in an excess supply of low-skilled labor.
• C)prevents some unskilled workers from getting needed on-the-job training.
• D)fails to raise the wage of any employed person.

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Definitions:

Net Present Value

The variance between the current value of cash coming in and the current value of cash going out over a time span.

Discount Rate

The interest rate used in determining the present value of future cash flows or in evaluating the attractiveness of an investment.

Project Cash Flows

The net amount of cash that is generated or expended by a particular project or investment, after accounting for all inflows and outflows.

Project Profitability Index

The ratio of the net present value of a project’s cash flows to the investment required.