Minimum Wages Create Unemployment in Markets Where They Create a

question 34

Multiple Choice

Minimum wages create unemployment in markets where they create a

• A)shortage of labor.Minimum wage laws are not the predominant reason for unemployment in the U.S.
• B)shortage of labor.Minimum wage laws are the predominant reason for unemployment in the U.S.
• C)surplus of labor.Minimum wage laws are not the predominant reason for unemployment in the U.S.
• D)surplus of labor.Minimum wage laws are the predominant reason for unemployment in the U.S.

---

Definitions:

Direct Labor-Hours

A measure of the total amount of time worked by employees directly involved in manufacturing a product or delivering a service.

Variable Overhead

Costs of production that vary with the level of output, such as utility expenses or raw material costs.

Direct Materials

Raw materials that are directly traceable to the production of a specific good or service.

Variable Overhead

Costs of operation that fluctuate with production volume, such as utilities for machinery.