PT129.S1.Q8

PrepTest 129 - Section 1 - Question 8

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When companies' profits would otherwise be reduced by an increase in the minimum wage (a wage rate set by the government as the lowest that companies are allowed to pay), the companies often reduce the number of workers they employ. ███ █ ██████ ████████ ██ ███ ███████ ████ ███ ███ ██████ ██ ███ ████████ ██ ███ █████████ █████████ █████ ████ ███████ ███ ████ ███ ███████ █████

"Surprising" Phenomenon

Minimum-wage increases usually result in layoffs so that profits don't fall, yet the fast-food industry didn’t experience layoffs after a recent minimum-wage increase.

Objective

The right answer will be a hypothesis explaining why the fast-food industry didn’t react as industries generally do to a minimum-wage increase, especially considering that most fast-food industry employees are paid the minimum wage. The explanation might explain how fast-food companies can maintain their profits despite paying higher wages.

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8.

Which one of the following, ██ █████ ████ █████ ██ ███████ ███ ███ ████████ ██ ███ ███████ ████ ███ ███ ██████ ███ ██████ ██ ████ ██ ███ █████████ █████████

a

After the recent ████████ ██ ███ ███████ █████ █████████ ███ ████████ ██ ███ █████████ ████████ ███████ █████████ ██ █████████ ███████ ██ ████ ██████ ██ ██████████ █████ ██ █████ ███ ████ ██ ███ ████ █████████

b

If, in any █████████ ██ ████████ ██ ███ ███████ ████ █████ ██ ███ ███████████ ██ ████ ████ ████ ███ ███ ███████ █████ ████ █████████████ ███████████ █████████ ████ ████ ██ ██████████ ██ ████ █████████

c

With respect to ███ ████████ ██ █████████ ██ ███ ███████ █████ ███ █████████ ████████ ████ ███ ██████ █████████████ ████ █████ ██████████ ████ ██████ ████ ███████ ██ ███ ███████ █████

d

A few employees ██ ███ █████████ ████████ ████ ███████ ███████ ████ ████ ███ ████ ██████ ███████ ████ ██████ ███ ███ ███████ ████ ███ ████████████

e

Sales of fast ████ ██ ███████ ███ ███ ████ ███ ███████ ████ ███ ███ ████████ █████████ ███ ██████ ██████ ██ ███ ███████ █████

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