In Theory, a Minimum Wage Should Lead to Unemployment, but There

question 20

True/False

In theory, a minimum wage should lead to unemployment, but there is no evidence of such an effect.

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Definitions:

Potential Profit

The expected earnings a business can achieve from its operations, investment activities, and other financial ventures, assuming all conditions are favorable.

Direct Exporting

The sale of goods directly to a foreign market by the manufacturer or producer, without using an intermediary.

U.S. Airplane Manufacturer

A company based in the United States that specializes in designing, manufacturing, and selling aircraft.

Intermediaries

Individuals or businesses that act as middlemen in the distribution process, connecting producers and consumers.