Which of the following statements about the minimum wage is true?
A. The minimum wage has not had any impact on income inequality.
B. Due to minimum wage increases, income inequality is now lower than it was in the mid-20th century.
C. The minimum wage tends to create inflation, which benefits the wealthy more than the poor.
D. Adjusting for inflation, the real minimum wage has fallen in the last 40 years.
Answer: D
You might also like to view...
An increase in a country's net commodity terms of trade will
A) not always guarantee positive changes in the country's economy. B) always increase the country's economic welfare. C) always increase the country's real income. D) never increase the country's quantity of exports. E) always increase the country's production of its import competing good.
Which of the following statements is true?
a. Money must be relatively "scarce" if it is to have value. b. Money must be divisible and portable. c. M1 is the narrowest definition of money. d. All of these.
If the dollar-pound exchange rate is $2.00 per pound, then a shirt priced at 25 pounds will cost an American
a. $25 b. $50 c. $26 d. $27 e. an amount that cannot be calculated without additional information.
The primary source of scale diseconomies appears to be
a. a firm's inability to acquire quality resources b. too little demand for the firm's product c. consumers who resist dealing with large firms d. division of labor e. the organizational difficulties of managing an ever larger enterprise