If the Minimum Wage Law Is Repealed and Employers Begin

question 10

Multiple Choice

If the minimum wage law is repealed and employers begin using efficiency wages far less frequently, it would ___ unemployment and ____ the natural rate of unemployment:

• A)​Increase; increase.
• B)​Increase; not change.
• C)​Decrease; decrease.
• D)​Decrease; not change.

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Definitions:

Asset Turnover

A measure of how efficiently a company uses its assets to generate sales, calculated by dividing sales by total assets.

Net Sales

The total revenue from sales of goods or services, after deducting returns, allowances for damaged or missing goods, and discounts.

Asset Turnover

Asset turnover is a financial ratio that measures the efficiency of a company in using its assets to generate sales or revenue.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, representing the wear and tear or obsolescence of the asset.