Minimum wage laws create unemployment for low-skilled workers because the legal minimum wage is set
A) above the market wage, causing the quantity of labor supplied to be greater than the quantity of labor demanded.
B) below the market wage, causing the quantity of labor supplied to be greater than the quantity of labor demanded.
C) above the market wage, causing the quantity of labor supplied to be less than the quantity of labor demanded.
D) below the market wage, causing the quantity of labor supplied to be less than the quantity of labor demanded.
A
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Using the scenario above explain how this could have happened?
What will be an ideal response?
Joe consumes crawfish and shrimp. His utility function exhibits diminishing marginal utility of crawfish but the marginal utility of shrimp is constant. Will Joe's indifference curves be convex?
What will be an ideal response?
If the marginal utility of apples exceeds the marginal cost of producing apples, then in a free market production of apples will ____, with the likely result that marginal utility will ____
a. rise; fall b. fall; rise c. rise; rise d. fall; fall
Which of the following is an intermediate good?
A. Tomatoes sold in the grocery store that you use to make salsa. B. Tomatoes grown in your garden that you use to make salsa. C. Tomatoes sold to a factory and used in the production of spaghetti sauce. D. Tomatoes you buy at a local farmer's stand that you use to make salsa.