Minimum Wage Is an Example of a Price ________, and Results

question 235

Multiple Choice

Minimum wage is an example of a price ________, and results in a ________ of labor.

• A) floor; surplus
• B) ceiling; surplus
• C) floor; shortage
• D) ceiling; shortage

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Definitions:

Unemployment Tax Rates

Unemployment tax rates are percentages that employers must pay to state and federal agencies, based on the number of their employees, to fund unemployment insurance benefits.

Payroll Taxes Expense

Taxes that an employer incurs based on the wages and salaries of employees, including social security, medicare, and unemployment taxes.

Accrue Payroll

To accrue payroll means to record expenses and liabilities for salaries and wages incurred by an organization during an accounting period, but not yet paid.

Warranty Costs

Expenses incurred by a company to repair, replace, or refund products that are found to be defective within a warranty period.