A stated goal of a minimum wage is to

A) increase government tax revenue.
B) stabilize production costs.
C) boost the incomes of low-wage earners.
D) decrease business profits.
E) increase business profits by making the labor market more efficient.

C

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a. will always stabilize income better. b. will stabilize income better if velocity is unstable. c. still allows the Fed unlimited discretion. d. eliminates the need for a central bank.

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Loopholes increase the efficiency of the tax system by making taxpayers better off

a. True b. False Indicate whether the statement is true or false

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