Which of the Following Is Not a Consequence of Minimum

question 205

Multiple Choice

Which of the following is not a consequence of minimum wage laws?

• A)Low-skilled workers are hurt because minimum wage reduces the number of jobs providing low-skilled workers with training.
• B)Employers will be reluctant to offer low-skilled workers jobs with training.
• C)Producers have an incentive to offer workers non-wage benefits such as health care benefits and convenient working hours rather than a higher wage.
• D)Some workers benefit when the minimum wage is increased.

---

Definitions:

Working Capital Investment

The funds invested in the short-term assets of a company, such as inventory and receivables, to support its daily operations.

Salvage Value

The estimated residual value of an asset at the end of its useful life, important for calculating depreciation.

Discount Rate

The interest rate used in discounted cash flow analysis to determine the present value of future cash flows or to evaluate the attractiveness of an investment.

Incremental Cost Approach

A decision-making process that focuses on the changes in total cost resulting from a specific business decision, considering only the relevant costs and benefits that differ between alternatives.