Which of the Following Is Correct

question 30

Multiple Choice

Which of the following is correct?

• A)Studies of the effects of the minimum wage typically find that a 10 percent increase in the minimum wage raises the average wage of teenagers by 10 percent.
• B)The drop in teenage employment caused by a 10 percent increase in the minimum wage is not significant.
• C)The minimum wage is more often binding for teenagers than for other members of the labor force.
• D)All firms consistently enforce minimum-wage laws.

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Definitions:

Marginal Utility

The extra gratification or advantage a person receives by consuming an additional unit of a specific good or service.

Marginal Utilities

The extra pleasure or benefit a consumer gets from purchasing and using an additional unit of a product or service.

Utility-Maximizing

A principle in economics where consumers aim to achieve the highest level of satisfaction with their choices, subject to their income and the prices of goods and services.

Marginal Utility

Marginal Utility represents the additional satisfaction or utility a consumer gains from consuming one more unit of a good or service.