(Appendix) In the production function Q = 10L1/2K1/2, is diminishing returns a characteristic of this production function?
What will be an ideal response?
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The unemployment rate is higher with a minimum wage law than it would be without a minimum wage law
Indicate whether the statement is true or false
If two workers can produce 22 units of output, and the addition of a third worker increases output to 30 units, the marginal product of the third worker is:
a. 8 units. b. 10 units. c. 22 units. d. 30 units.
The best hope for continued growth of the U.S. economy probably lies in:
a. a return of manufacturing to the U.S. b. innovation c. patents d. decreasing poverty
Suppose that the minimum wage was increased to $10 per hour. Which of the following would be most likely to result from the minimum wage increase?
a. an increase in the employment of low-skill workers previously employed at wage rates of less than $10 per hour b. an increase in the number of jobs providing low-skill workers with on-the-job training c. a reduction in the number of teenagers unemployed d. an increase in the demand for high-skill workers providing services that are a good substitute for those whose wages were pushed up by the higher minimum wage