Refer to the information provided in Figure 28.3 below to answer the question(s) that follow.
Figure 28.3Refer to Figure 28.3. A minimum wage of $10
A. will lead to unemployment of 40.
B. will lead to unemployment of 20.
C. will lead to unemployment of 60.
D. will have no effect because the minimum wage is set at the equilibrium wage and for a minimum wage to have any effect on the labor market it must be below the equilibrium wage.
Answer: D
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Before its IPO, Twitter was an example of a private firm. As a private firm, Twitter was
A) not subject to government regulations and taxation. B) run by its founders, Evan Williams, Noah Glass, Jack Dorsey, and Biz Stone. C) not legally allowed to raise funds through venture capital firms. D) run by stockholders and a board of directors.
With an upward sloping LM curve, a rising interest rate __________ money demand, so that a contractionary monetary policy is __________ than in the case of a vertical LM curve
A) raises; stronger B) raises; weaker C) lowers; stronger D) lowers; weaker
Which of the following characterizes an oligopolistic industry?
a. Few firms and standardized products b. Few firms and differentiated products c. Few firms and wither standardized or differentiated products d. A large number of competing firms
Refer to the data. If a new production technique is developed that enables a firm to produce 20 units of output with 3 units of land, 3 of labor, 1 of capital, and 2 of entrepreneurial ability, this technique would:
Answer the question using the following data, which show all available techniques for producing 20 units of a particular commodity:
A. not be adopted because, although it reduces production costs, it does not increase profit.
B. be adopted because it would lower production costs and increase economic profit.
C. not be adopted because it entails higher production costs than other available techniques.
D. be adopted, even though economic profits would be reduced slightly.