Some Countries Have High Minimum Wages and Require a Lengthy

question 256

Multiple Choice

Some countries have high minimum wages and require a lengthy and costly process to get permission to open a business

• A) Reducing either the minimum wage or the time and cost to open a business would have no effect on the long- run aggregate supply curve.
• B) Reducing the minimum wage and the time and cost to open a business would both shift the long-run aggregate supply curve to the right.
• C) Reducing the minimum wage would shift long-run aggregate supply to the right. Reducing the time and cost to open a business would have no affect on the long-run aggregate supply curve.
• D) Reducing the minimum wage would have no affect on the long-run aggregate supply curve. Reducing the time and cost to open a business would shift the long-run aggregate supply curve to the right.

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Definitions:

Finished Goods

Goods that are available for sale after completing the production process.

Work in Process

Inventory items that are currently in the midst of the production process, not yet completed goods.

Standard Costs

Predetermined costs for products or services, used for budgeting and measuring performance against actual costs.

Raw Materials

These are the basic substances in their natural, modified, or semi-processed state, used as an input to a production process for manufacturing.