Which of the Following Statements Accurately Characterizes the Effects of Minimum-Wage

question 450

Multiple Choice

Which of the following statements accurately characterizes the effects of minimum-wage laws?

• A)Some workers who might have been employed at a lower wage become unemployed.
• B)Those workers who remain employed benefit from a higher wage.
• C)The effects of minimum-wage laws depend strongly on the elasticity of demand.
• D)All of the above accurately characterize the effects of minimum-wage laws.

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Definitions:

Maturity

The point in time when a financial instrument such as a bond or loan becomes due and payable.

Term Structure

The relationship between interest rates or yields and different terms or maturities for comparable debt instruments.

Interest Rates

The amount charged, expressed as a percentage, by a lender to a borrower for the use of assets.

Nominal Interest Rates

Interest rates that have not been adjusted for inflation, reflecting the rate of interest paid by borrowers or earned by investors.