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3 years ago

True or false: a minimum wage below $10 per hour is a binding minimum wage in this market.

2 answers:

7 0

It's FALSE.

To be able to make the minimum wage be binding, an expert in economics calls it a minimum gross to prevent the industry market from accomplishing equilibrium a binding smallest amount wage.
It must be set above the equilibrium gross. However, below or at least $10 per hour would not be binding.

BigorU [14]3 years ago

3 0

The statement is False.

Further Explanation:

Minimum wage: The government implements a price floor to ensure that the employers should pay their employees a minimum wage rate. If the wages are paid at a rate that is lower than the rate fixed by the government, it is considered as illegal. A minimum wage is binding when it is set more than the equilibrium wage. When a minimum wage is binding, wage-fixing is blocked. The market is also prevented from apportioning labor resources. If it is below the equilibrium wage, then the employees will be underpaid. When the minimum wage is more than the equilibrium wage then some companies are not able to hire the employees, and this will lead to an increase in unemployment. It will lead to a new minimum wage rate.

Therefore, a minimum wage that is binding minimum wage is set above the equilibrium wage. Thus minimum wage below $10 is not a minimum wage that is bidding in the market.

Learn more:

1. Minimum wage rate

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3. Learn more about renting and owning

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Answer details:

Grade: High School

Subject: Economics

Chapter: Demand and Supply

Keywords: a minimum wage below $10 per hour is a binding minimum wage in this market, true or false, prevents the labor, market from reaching, equilibrium, a binding minimum wage, labor resources.

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How much time will be needed for 35,000 to grow to 44,622.09 if deposited at 7% compounded quarterly

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Answer:

It will take 14 quarters (3.5 years) to reach $44,622.09 from $35,000 at an interest rate of 7% compounded quarterly.

Explanation:

Giving the following information:

PV= 35,000

FV= 44,622.09

i= 0.07/4= 0.0175

We need to calculate the number of quarters required to reach the objective. We will use the following formula:

n= ln(FV/PV) / ln(1+i)

n= ln(44,622.09/35,000) / ln(1.0175)

n= 14

It will take 14 quarters (3.5 years) to reach $44,622.09 from $35,000 at an interest rate of 7% compounded quarterly.

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3 years ago

Which of the following statements regarding GDP is correct?

nirvana33 [79]

Answer:

Correct option is (a)

Explanation:

GDP or Gross domestic product includes monetary value of all goods and services produced within a country. It includes all private and public investments and exports less taxes and imports.

Option b, c and d are incorrect as GDP accounts for only domestic production and not foreign activities. Details about how income is distributed is not given by GDP. GDP provides details about economic condition of the nation. GDP does not indicate wholesome well being of the nation like human development, infant mortality and standard of living.

GDP accounts for factory production but does not account for any production carried out at the cost of environmental degradation.

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3 years ago

Aylward, Inc. currently has $2,141,000 in current assets and $842,000 in current liabilities. The company’s managers want to in

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Answer:

$240,500

Explanation:

We know that

Current ratio = Total Current assets ÷ total current liabilities

= $2,141,000 ÷ $842,000

= 2.5 times

For current ratio falling below 2.2, we have to assume the borrowed amount be X

So, the equation would be

$2,141,000+ X ÷ $842,000 + X = 2.2

$2,141,000+ X = 2.2 × ($842,000 + X)

$2,141,000+ X = $1,852,400 + 2.2X

$2,141,000 - $1,852,400 = 2.2X - X

$288,600 = 1.2X

So X would be $240,500

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3 years ago

(a) Bank of Marienfield started its first day of operations with $150 million in capital. It received a total of $100 million i

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Here, we are going to prepare the balance sheet of Bank of Marienfield using the information given in the question..

Formula for Total liabilities is Capital + Checkable deposit + Loan from bank

Given Information

Capital = $150 Million

Checkable deposit = $100 Million

Loan from bank= $50 Million

Total liabilities = $150 Million + $100 Million + $50 Million

Total liabilities = $300 Million

Additional given Information

Commercial loan = $150 Million

Investment in shares = $120 Million

Investment in Treasury bonds = $20 Million

Required reserve = Checkable deposit * Required reserve rate

Required reserve = $100 Million * 10%

Required reserve = $10 Million

Excess reserve = Total liabilities - (Commercial loan + Investment in shares + Investment in Treasury bonds + Required reserve)

Excess reserve = $300 Million - ($150 Million + $120 Million + $20 Million + $10 Million)

Excess reserve = $300 Million - $300 Million

Excess reserve = $0 Million

Balance sheet of Bank of Marienfield.

Assets Amount Liability Amount

Required reserves $10 million Bank capital $150 million

Excess Reserve $0 Checkable deposit $100 million

Commercial loan $150 million Loan from bank $50 million

Investment in shares $120 million

Invest. Treasury bond $20 million

Total $300 million Total $300 million

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3 years ago

In 2019, Joshua gave $13,400 worth of Microsoft stock to his son. In 2020, the Microsoft shares were worth $27,000. What was the

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Based on the information given the gift tax in 2019 is $0.

Gift tax are tax that is imposed by the federal government on taxpayer for giving out gift.

The gift tax for 2019 is $15,000 annually which means that any taxpayer that gift someone else gift either as cash or property that is not above $15,000 will not be taxed or will not incurred any gift tax.

On the other hand any taxpayer that give out gift that is above $15,000 will be taxed which means that the giver will have to file a tax return reason being that the gift is above the recommend yearly gift tax exclusion amount of $15,000.

Based on the given scenario the amount Joshua gave his son which is $13,400 is not above the yearly gift tax of $15,000 which means that Joshua will not file a gift tax return.

Inconclusion the gift tax in 2019 is $0.

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