Which of the following is not consistent with a minimum wage that is set above the equilibrium wage?
A. Some workers will end up with higher wages.
B. Some workers will end up unemployed.
C. A labor surplus will result.
D. There will be no unemployment.
Answer: D
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Death taxes, both state and federal, account for about _____ percent of total tax revenue.
A. 1 B. 2 C. 3 D. 10
The ingredients that go into making any good or service are called the:
A. factors of output. B. factors of production. C. output makers. D. production ingredients.
Growth in GDP per capita will be achieved when
A. The government allows tax credits for companies who invest in research and development. B. GDP grows faster than the population. C. Labor demand decreases substantially while labor supply increases slightly. D. Investment is equal to saving.
Refer to the information provided in Figure 4.3 below to answer the question(s) that follow.
Figure 4.3Refer to Figure 4.3. If the government will not allow retailers to charge less than $0.50 for a pencil, which of the following will happen?
A. Demand must eventually increase so that the market will come into equilibrium at a price of $0.50. B. Retailers will have an excess supply of pencils. C. The market will be in equilibrium at a price of $0.50. D. Supply must eventually decrease so that the market will come into equilibrium at a price of $0.50.