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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Hayley

21 hours 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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Tanesha

17 days 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

19 days 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

22 days ago

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

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