If the minimum wage rate is higher than the equilibrium wage rate, fewer people will be hired because the cost of labor is too high. I agree.
Explanation:
- If the minimum wage is set above the equilibrium wage rate, it has powerful effects. The Labor Market and the Minimum Wage The equilibrium wage rate is $4 an hour. The minimum wage rate is set at $5 an hour. So the equilibrium wage rate is in the illegal region
- If the minimum wage is set below the equilibrium wage rate, it has no effect. The market works as if there were no minimum wage. If the minimum wage is set above the equilibrium wage rate, it has powerful effects.
- The equilibrium market wage rate is at the intersection of the supply and demand for labour. Employees are hired up to the point where the extra cost of hiring an employee is equal to the extra sales revenue from selling their output.
- When the labor market is in equilibrium, the economy is at full employment.
Answer:
c. Debit Unearned Subscriptions $13,800; credit Subscriptions Income $13,800
Explanation:
Based on the information given the correct appropiate adjusting entry at December 31, 20X1, is to Debit Unearned Subscriptions $13,800 and Credit Subscriptions Income $13,800
December 31, 20X1
Debit Unearned Subscriptions $13,800
Credit Subscriptions Income $13,800
(3/12*$55,200=$13,800)
(October 1 to December 31 will gives us 3month)
