If a minimum wage is set at W, what will happen to employment in the monopsonistic labor market shown in the diagram above?
A. Employment will decrease
B. Employment will increase
C. Employment will stay the same
D. Employment may increase but usually it tends to stay the same
B. Employment will increase
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Which of the following was NOT a reason given for opposing the renewal of the charters of the Banks of the United States?
(a) The Banks of the United States made too many bad loans. (b) The Banks of the United States were unconstitutional. (c) The Banks of the United States hindered the development of private banks. (d) The Banks of the United States were owned, in part, by foreign investors.
The ________ nature of patents attempts to balance the social gain from the product against the ________.
A) temporary; competitive firm's economic profit from the product B) permanent; competitive firm's economic profit from the product C) temporary; deadweight loss to society D) permanent; deadweight loss to society
The curve that reflects the view that when tax rates are too high, lowering them not only creates greater incentive for suppliers to increase production, but ends up generating higher tax revenues, is known as the:
a. Phillips curve. b. Laffer curve. c. Engel curve. d. Rational expectations curve. e. consumption curve.
Economists use the term "business cycle" to refer to
a. the growth of small businesses into major corporations. b. changes in products that occur from improved technology. c. fluctuations in the level of real output and employment. d. periods of increases and decreases in the rate of inflation.