An Increase in the Minimum Wage

question 31

Multiple Choice

An increase in the minimum wage

• A)reduces structural unemployment.
• B)reduces frictional unemployment,
• C)increases structural unemployment.
• D)increases frictional unemployment.

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Definitions:

Payables

Financial obligations or amounts owed by a business to its suppliers or creditors for goods and services received.

Firm's Cash Cycle

The time period it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

Investments In Inventory

Funds allocated towards purchasing goods for sale or raw materials to produce goods, aiming at generating future revenues.

Restrictive Policy

A policy designed to limit or restrict certain behaviors, actions, or practices, typically in a financial or regulatory context.