To Be Effective in Raising People's Wages,a Minimum Wage Must

question 248

Multiple Choice

To be effective in raising people's wages,a minimum wage must be set

• A) above the equilibrium wage rate.
• B) below the equilibrium wage rate.
• C) equal to the equilibrium wage rate.
• D) below $7.
• E) either above or below the equilibrium wage depending on whether the supply curve of labor shifts rightward or leftward in response to the minimum wage.

---

Definitions:

Cash Flow

A rephrased definition for KT-16: The total amount of money being transferred into and out of a business, especially as affecting liquidity.

Net Operating Cash Flow

The amount of cash generated by a company's regular business operations over a specific period.

Long-Term Liabilities

Debts or obligations that are not due for settlement within one year and are often used to finance the purchase of long-term assets.

Indirect Method

A way of calculating cash flows from operating activities in the cash flow statement by adjusting net income for changes in balance sheet accounts.