Which of the following statements is true of minimum wages?
A) Minimum wages are sometimes referred to as wage ceilings.
B) No state in the U.S. economy has ever enforced a minimum wage.
C) Minimum wages are normally set above the labor market clearing wage rate.
D) Minimum wages benefit firms and producers.
C
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If a country lends more to foreign countries than it borrows from foreign countries in a year, then definitely during that year
A) it has a current account deficit. B) it is a creditor nation. C) it is a debtor nation. D) it is a net lender.
When Joe maximizes utility, he finds that his MRS of X for Y is greater than Px/Py. It is most likely that:
A) Joe's preferences are incomplete. B) Joe's preferences are irrational. C) Joe is not consuming good X. D) Joe is not consuming good Y.
Loans are: a. assets of banks, liabilities of borrowers. b. liabilities of banks, assets of borrowers. c. assets of banks and their borrowers
d. liabilities of banks and their borrowers.
In a self-regulating economy, inflationary and recessionary gaps produce shifts of the
A) AD curve that maintain the short-run equilibrium point. B) AD curve that move the economy to a long-run equilibrium point. C) SRAS curve that maintain the short-run equilibrium point. D) SRAS curve that move the economy to a long-run equilibrium point.