Refer to Figure 20-1. Based on the graph of the labor market above, if a minimum wage is set at $5 per hour, which of the following will occur?
A) The level of unemployment will rise, but the percentage of the labor force unemployed will not change.
B) The unemployment rate will fall.
C) The unemployment rate will rise.
D) None of the above will occur.
D
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When the marginal benefit and marginal cost of sodas are equal, then
A) the production of sodas might be allocatively efficient but it is definitely production inefficient. B) the allocatively inefficient amount of sodas is being produced. C) more sodas should be produced to reach the allocatively efficient quantity. D) fewer sodas should be produced to reach the allocatively efficient quantity. E) the allocatively efficient amount of sodas is being produced.
A monopolist determines the profit-maximizing output
A) at the point at which TR = TC. B) at the point at which MR = MC. C) at any point it wants because it is the only producer of the product. D) at the point at which TR is maximum.
If the marginal benefit Isaac derives from the consumption of another candy bar is greater than the price of the candy bar, then: a. Isaac will not purchase any more candy bars
b. Isaac will increase his total satisfaction by purchasing the candy bar. c. the opportunity cost of the candy bar is less than the price. d. Isaac's total utility will diminish if he purchases the candy bar.
Does an upward-sloping labor-supply curve mean that people respond to a decrease in the wage by enjoying more leisure or less leisure?