Critics of Minimum Wage Laws Argue That Such Laws Will

question 168

Multiple Choice

Critics of minimum wage laws argue that such laws will end up hurting people with lower skills because

• A) lower skilled workers will be forced into taking jobs that they would not freely choose.
• B) compensating differentials will not be applied.
• C) property income is a better way to measure hourly rates.
• D) these laws interfere with the smooth functioning of the labor market and create unemployment.

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Definitions:

Merchandiser

A business entity engaged in selling goods directly to consumers or other businesses.

Cost Flow

The manner in which costs move through a firm, from initial acquisition of raw materials to final sale of finished goods.

Single-Step Income Statement

An income statement format that lists all revenues and then deducts all expenses to find the net income with only one subtraction.

Multiple-Step Income Statement

A detailed income statement that separates operational revenue and expenses from non-operational ones, presenting a clear view of a company’s operational efficiency.