AICPA Exam CPA-Business 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.

AOnly I

BOnly II

CBoth I and II

DNeither I nor II

Show Suggested 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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Helene

1 months 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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Margart

1 days 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

4 days ago

I disagree, I believe it's 'A. Only I'. Employers will definitely move down the labor demand curve.

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Junita

13 days 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 months 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 months 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 months 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

12 days 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

13 days 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

19 days 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

2 months 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

8 days ago

Yes, it will lead to a decrease in the quantity of labor demanded.

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Hubert

17 days ago

Yes, that's correct. Employers will move down the labor demand curve.

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Janella

25 days ago

So, you think it will cause the quantity of labor demanded to fall?

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Tambra

25 days ago

I agree, increasing the minimum wage will definitely affect the labor demand curve.

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Sheldon

1 months ago

I agree, increasing the minimum wage will definitely impact the demand for labor.

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Ming

1 months ago

I think the correct answer is A. Only I.

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Grover

1 months ago

I think the correct answer is A. Only I.

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Tanesha

2 months 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

2 months 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

3 months ago

I think the answer is C, Both I and II.

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