If the minimum wage is $7, how many people are employed?
Answer: At the minimum wage = $ 7, number of employed = 98
At wage = $7 , quantity supplied is the number of people employed
You might also like to view...
Labor-market regulations in developing countries
a. always reduce employment b. usually reduce employment c. may reduce employment, but the evidence is weak d. rarely reduce employment e. none of the above
In the short run, the fixed costs of a firm:
A. are irrelevant in deciding whether to shut down production. B. are equal to zero when quantity produced is zero. C. are all the costs it incurs when it produces some positive quantity. D. can sometimes be avoided in the short run.
Instead of conducting laboratory experiments to generate data to test their theories, economists often
a. ask winners of the Nobel Prize in Economics to evaluate their theories. b. argue that data is impossible to collect in economics. c. gather data from historical episodes of economic change. d. assume that data would support their theories.
If a firm knows that the demand for its product is inelastic, it could generate more revenue by:
A. lowering the price, because the resulting change in sales would be relatively large. B. raising the price, because the resulting change in sales would be relatively large. C. lowering the price, because the resulting change in sales would be relatively small. D. raising the price, because the resulting change in sales would be relatively small.