If Minimum Wage Legislation Does Not Cause Unemployment, Then

question 130

Multiple Choice

If minimum wage legislation does not cause unemployment, then:

• A) those who work for minimum wage will benefit.
• B) firms will generally gain by earning higher profits.
• C) minimum wages may still be binding for many employees.
• D) most likely the government won't study how minimum wage legislation may affect employment.

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Definitions:

Manufacturing Overhead

Costs in the manufacturing process that are not directly allocable to specific units produced, like maintenance and utilities for the factory.

Machining Department

A specific section or unit of a manufacturing facility where machining processes, such as drilling, milling, or turning, are carried out.

Manufacturing Overhead

All indirect costs associated with manufacturing a product, like utilities, maintenance, and salaries of support staff.

Assembly Department

A segment of a manufacturing firm where components are put together to form a finished product.