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AICPA CPA-Business Exam - Topic 3 Question 96 Discussion

An increase in the minimum wage:I Will move employers down the labor demand curve, causing the quantity of labor demanded to fall.II Is likely to increase the supply of labor, as more people will be willing to work for the higher wage.
C) Both I and II
A) Only I
B) Only II
D) Neither I nor II

AICPA CPA-Business Exam - Topic 3 Question 96 Discussion

Actual exam question for AICPA's CPA-Business exam
Question #: 96
Topic #: 3
[All CPA-Business Questions]

An increase in the minimum wage:

I Will move employers down the labor demand curve, causing the quantity of labor demanded to fall.

II Is likely to increase the supply of labor, as more people will be willing to work for the higher wage.

Show Suggested Answer Hide Answer
Suggested Answer: C

Choice 'c' is correct. The most logical sequence in planning and controlling capital expenditures is to begin with identifying capital addition projects and other capital needs.

Choice 'a' is incorrect. Analyzing capital addition proposals omits other capital needs.

Choice 'b' is incorrect. Analyzing and evaluating all promising alternatives is beyond the scope of planning and controlling capital expenditures.

Choice 'd' is incorrect. Developing capital budgets is the same as planning and controlling capital expenditures.


by Boris at Sep 07, 2024, 11:24 PM

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Candida
7 months ago
I read that higher wages can lead to a decrease in labor demand.
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Gearldine
8 months ago
Wait, does raising the minimum wage really lead to job losses? Sounds off.
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James
8 months ago
Totally agree with II! More money means more people wanting to work.
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Oretha
8 months ago
Not sure about that, I feel like some businesses might just cut jobs instead.
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Marquetta
8 months ago
I think both I and II make sense. Higher wages usually attract more workers.
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Kasandra
9 months ago
I'm torn between I and II. I feel like both could happen, but I can't recall if there's a clear consensus on that.
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Veronika
9 months ago
This question feels familiar; I think we practiced something similar where we debated the effects of wage changes on employment levels.
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Buddy
9 months ago
I think I read that higher wages might attract more workers, so II could be true. But does that mean I should choose only II?
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Jutta
9 months ago
I remember discussing how an increase in minimum wage could lead to a decrease in labor demand, but I'm not entirely sure if it always happens that way.
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Filiberto
9 months ago
I'm pretty confident on this one. The minimum wage increase will shift the labor demand curve to the left, reducing the quantity of labor demanded. But it won't affect the supply of labor, which is what II is talking about. So the answer is A, only I.
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Narcisa
9 months ago
Hmm, I'm a bit unsure about this one. I know an increase in minimum wage will affect the labor market, but I'm not totally clear on the specific effects on labor supply and demand.
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Kimbery
9 months ago
This question seems straightforward. I think I can apply the basic labor supply and demand concepts we've been learning about.
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Adelina
9 months ago
Okay, let me think this through step-by-step. An increase in the minimum wage will make labor more expensive for employers, so they'll demand less of it. That's I. And II says the higher wage will make more people willing to work, increasing labor supply. I think the answer is C, both I and II.
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Cherilyn
9 months ago
Hmm, I'm a bit confused about how to approach this. I need to figure out the probability of the bars passing the first and second checks.
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Clorinda
9 months ago
Hmm, I'm a bit confused by the wording here. I need to re-read it carefully.
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Helene
1 year ago
Wait, is this a trick question? I'm just going to go with 'D. Neither I nor II' and hope for the best. That's the economic equivalent of throwing a Hail Mary pass.
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Glynda
1 year ago
I'm sticking with my choice of 'D. Neither I nor II'. It's a tough question, but I'm going with my gut.
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Margart
1 year ago
I see your point, but I still think it's 'C. Both I and II'. More people will be willing to work for the higher wage.
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Dorothy
1 year ago
I disagree, I believe it's 'A. Only I'. Employers will definitely move down the labor demand curve.
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Junita
1 year ago
I think it's actually 'C. Both I and II'. An increase in minimum wage will affect both labor demand and supply.
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Thora
1 year ago
I bet the person who wrote this question was paid minimum wage. That's why they're so confused about the effects of a minimum wage increase!
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Zita
1 year ago
This question is a real head-scratcher! I can't decide between C. Both I and II or D. Neither I nor II. It's like a game of economic tug-of-war.
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Kenny
1 year ago
Hmm, I'm not sure about that. I think B. Only II might be correct. Higher wages could attract more people to the labor market, increasing the supply of labor.
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Raylene
1 year ago
I'm not sure about that. I still believe B. Only II might be correct. Higher wages could attract more people to the labor market, increasing the supply of labor.
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Alisha
1 year ago
I agree with you. I also think C. Both I and II make sense in this scenario. It's a combination of factors that could affect the labor market.
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Rozella
1 year ago
I think C. Both I and II could be true. If employers move down the labor demand curve, the quantity of labor demanded may fall, but at the same time, higher wages could attract more people to work.
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Hayley
1 year ago
I think the correct answer is A. Only I. Increasing the minimum wage will cause employers to demand less labor, as it becomes more expensive to hire workers.
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Dannie
1 year ago
Yes, it will lead to a decrease in the quantity of labor demanded.
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Hubert
1 year ago
Yes, that's correct. Employers will move down the labor demand curve.
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Janella
1 year ago
So, you think it will cause the quantity of labor demanded to fall?
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Tambra
1 year ago
I agree, increasing the minimum wage will definitely affect the labor demand curve.
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Sheldon
1 year ago
I agree, increasing the minimum wage will definitely impact the demand for labor.
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Ming
1 year ago
I think the correct answer is A. Only I.
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Grover
1 year ago
I think the correct answer is A. Only I.
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Tanesha
1 year ago
I'm not sure about that. I think the answer might be B, Only II. Increasing the minimum wage could just increase the supply of labor without affecting the demand.
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Jacquelyne
1 year ago
I agree with Rhea. Increasing the minimum wage will indeed move employers down the labor demand curve and also attract more people to work for the higher wage.
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Rhea
1 year ago
I think the answer is C, Both I and II.
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