Who Loses and Who Gains from the Minimum Wage

question 3

Multiple Choice

Who loses and who gains from the minimum wage?

• A) Losers are all workers and gainers are all firms.
• B) Losers are all firms and gainers are all workers.
• C) Losers are all firms and some workers, while gainers are other workers.
• D) Gainers are some firms and all workers, while losers are some firms.
• E) Gainers are some firms and some workers, while losers are other firms and other workers.

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Definitions:

Residual Income

The income that remains after all personal debts and expenses have been paid, or in business, the net income after deducting cost of capital from operating profit.

Investment Center

A business segment within a company for which the manager has control and responsibility over cost, revenue, and investments.

Target Income

The specific amount of net income that a company aims to achieve for a certain period.

Investment Turnover

Investment turnover measures how efficiently a company generates sales from its investment in fixed assets.