Which of the Following Is Not Likely to Result from an Increase

question 21

Multiple Choice

Which of the following is not likely to result from an increase in the federal minimum wage?

• A)​an increase in the quantity of low-skill labor supplied
• B)​a decrease in the quantity of low-skill labor demanded
• C)​a decrease in teenage unemployment
• D)​an increase in teenage unemployment

---

Definitions:

Accounting Rate of Return

The return on an investment calculated by dividing the average annual profit by the initial investment cost, typically used to assess the profitability of potential investments.

Net Cash Flow

The difference between a company's cash inflows and outflows during a specific period.

Capital Budgeting

The process of evaluating and selecting long-term investments that are in line with the strategy and financial performance of an organization.

Payback Period

The payback period is a capital budgeting metric that measures the time required for an investment to generate cash flows sufficient to recover its initial cost, helping assess the risk and efficiency of an investment.