Which of the following is an effect of a minimum wage law that establishes a wage floor above the current market clearing? wage?
A) surplus labor, or unemployment
B) a decrease in the market clearing wage
C) a decrease in the quantity of labor supplied
D) an increase in the quantity of labor supplied
Ans: A) surplus labor, or unemployment
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Increased labor demand will result in
A) lower wages. B) more employment benefits. C) higher wages. D) no change in wages.
Net exports are
a. total exports minus total imports b. what foreigners earn in the United States minus what US citizens earn abroad c. always positive because the United States has always had a positive trade balance. d. total imports minus total exports e. total exports minus depreciation
One defining characteristic of pure monopoly is that the ________.
A. monopoly produces a product with no close substitutes B. monopoly uses advertising C. entry into the industry is relatively easy, but exit is difficult D. monopoly is a price taker
When quantity supplied is greater than quantity demanded
A. there is excess demand that is not being satisfied. B. price will rise until it gets back to equilibrium. C. price will fall until it gets back to equilibrium. D. the market is in equilibrium.