The above figure shows a labor market with a minimum wage of $8 an hour. The deadweight loss equals the
A) area abc.
B) distance ab.
C) distance ad.
D) area bad.
E) area acd.
A
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Studies show that the largest negative impact of illegal immigrants is on:
A. The wages of native-born workers B. The average wage in the U.S. C. Employment opportunities of native-born workers D. The wages of previous immigrants
In order to obtain an efficient allocation of resources worldwide
A) countries that have a lot of resources should ship resources to countries that do not have a lot of resources. B) countries that have a lot of resources should not trade since poorer countries cannot compete. C) each country should produce the good they have a comparative advantage in and then trade. D) no trade among countries should occur.
A risk-seeker is likely to:
A. buy a government bond instead of a stock. B. put money in a savings account instead of investing in a start-up company. C. invest in a start-up company instead of putting his money under his mattress. D. put his money under his mattress instead of buying company stock.
The discount window provides:
A. guaranteed emergency funds for banks in trouble at a higher interest rate than federal funds rate. B. loans to banks at low interest rates, so they can lend more money out to the public. C. guaranteed emergency funds for banks in trouble at a lower interest rate than others. D. loans to banks at low interest rates, only when the economy is doing well.