Minimum-Wage Laws Can Keep Wages

question 24

Multiple Choice

Minimum-wage laws can keep wages

• A)above equilibrium and cause a surplus of labor.
• B)above equilibrium and cause a shortage of labor.
• C)below equilibrium and cause a surplus of labor.
• D)below equilibrium and cause a shortage of labor.

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Definitions:

Agency Approach

A mechanism used in financial management where one party (the agent) is allowed to act on behalf of another (the principal) in financial transactions or decisions.

Common Shares

Equity securities that represent ownership in a corporation, providing voting rights and entitling the holder to a share of the company’s success through dividends and/or capital appreciation.

Unamortized Premium

The portion of a bond premium that has not yet been amortized or gradually written off against earnings over the bond's life.

Wholly Owned Subsidiary

A company whose entire share capital is owned by another company, making it fully controlled by the parent company.