The general equilibrium analysis of a minimum wage applied to only some sectors of the economy suggests that
A) workers in all sectors will face increased wages.
B) some workers in the covered sectors will lose their jobs and remain unemployed.
C) some workers originally employed in the covered sectors will move to the uncovered sectors, driving down wages in the uncovered sectors.
D) all workers will be worse off.
C
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What impact would the Fed's raising the interest rate have on any inflationary pressure in the economy?
A) An increase in interest rates decreases the money demand, which could slow increases in the price level. B) An increase in interest rates decreases the exchange rate, which causes net exports to rise, generating inflation. C) An increase in interest rates increases real GDP, which creates inflation in an economy. D) An increase in interest rates increases the money supply, which could cause the price level to increase.
In the figure above, what is the point price elasticity of demand when price is $60?
A. -0.50 B. -2.00 C. -1.00 D. -0.75 E. -1.60
For a given compensation potential (isocost curve), an employee with a large family is more likely to pick a wage-benefit mix that emphasizes
A. incentive piece rates. B. risk-averse commission plans. C. wages. D. fringe benefits.
According to new classical economists, the:
A. short-run demand for labor curve is vertical. B. short-run aggregate demand curve is vertical. C. long-run aggregate supply curve is horizontal. D. long-run aggregate supply curve is vertical.