Explain how scarce jobs are allocated when a minimum wage is in place
What will be an ideal response?
If a minimum wage is set above the equilibrium wage, the ability of the competitive market to allocate resources is thwarted and other means must be used. Sometimes the method used is first-come, first-served so that those who are first in line to apply for openings are given the jobs. Other times discrimination is used so that those from favored groups are allocated the jobs.
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Consider an economy that has the following monetary data. The monetary base and the money supply are expected to grow at a constant rate of 20% per year. Inflation and expected inflation are 20% per year
Suppose that bank reserves and currency pay no interest, all currency is held by the public, and bank deposits pay no interest. What is the nominal value of seignorage over the year? A) $10 B) $60 C) $70 D) $200
A country should export the goods in which it has an absolute advantage
a. True b. False Indicate whether the statement is true or false
Credit risks are based mainly on:
a. The maturity of an issue. b. The amount of national credit outstanding relative to GDP. c. The solvency, performance, and liquidity of borrowers. d. The degree to which market variables, like interest rates and exchange rates, change. e. None of the above.
If the Bureau of Labor Statistics considers Jessica to be a discouraged worker, then she is not counted as unemployed for purposes of computing the official unemployment rate
Indicate whether the statement is true or false