-A Reduction in the Minimum Wage Will Tend to Cause

question 111

Multiple Choice

-A reduction in the minimum wage will tend to cause which of the following?

• A) a reduction in poverty
• B) an increase in the number of workers employed
• C) an increase in the quantity supplied of labor
• D) a reduction in the quantity demanded of labor

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Definitions:

Product Costs

Expenses directly incurred from the manufacturing of products, including direct materials, direct labor, and manufacturing overhead.

Manufacturing Margin

The difference between the sales revenue of manufactured goods and the cost of their direct materials and direct labor.

Variable Selling

Costs associated with selling a product that vary with the level of sales activity, such as commissions or shipping fees.

Administrative Expenses

These are the expenses that an organization incurs not directly tied to a specific function such as manufacturing, production, or sales.