An Increase in the Minimum Wage

question 31

Multiple Choice

An increase in the minimum wage

• A)reduces structural unemployment.
• B)reduces frictional unemployment,
• C)increases structural unemployment.
• D)increases frictional unemployment.

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Definitions:

Shares Outstanding

The total number of shares that are currently owned by shareholders, including restricted shares owned by the company's officers and insiders as well as those held by the public.

Market Price

The market price at which you can currently buy or sell an asset or service.

Cash Deal

A transaction where the payment for a good, service, or acquisition is made entirely with cash instead of financing or stock exchanges.

Fair Market Value

The price at which an asset would trade in a competitive auction setting, reflecting the value of an asset in the open market.