When a Minimum-Wage Law Forces the Wage to Remain Above

question 290

True/False

When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the quantity of labor supplied is higher and the quantity demanded of labor is lower than at the equilibrium wage.

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Definitions:

Journals

Recorded chronological entries that detail all the financial transactions of a business, used as the initial place of record.

Debit

An accounting entry that increases an asset or expense account, or decreases a liability or equity account.

Increase

An upward movement in quantity, value, or some measure of performance.

Revenues

Revenues refer to the income that a business generates from its normal business operations, typically from the sale of goods and services to customers.