A minimum wage law
A) lowers the wage rate of workers who are able to get a job.
B) increases employment.
C) increases the time spent searching by workers who cannot find a job.
D) creates efficiency in the labor market.
E) must be set below the equilibrium wage rate in order to have an impact.
C
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This graph demonstrates the domestic demand and supply for a good, as well as a quota and the world price for that good.
According to the graph shown, if the government restricts free trade, area G represents:
A. government tax revenues, which go to the domestic government. B. quota rents, which go to foreign firms or governments. C. quota rents, which go to domestic producers. D. government tax revenues, which go to the foreign government.
The infant industry argument is valid if the present value of the stream of national benefits is less than the present value of the stream of national costs.
Answer the following statement true (T) or false (F)
A concentration ratio gives
A. the sales of the four largest firms in the industry divided by the sales of the eight largest firms in the industry. B. the percentage of all sales contributed by the four or eight largest firms in the industry. C. the total sales of four or eight of the mid-sized firms in the industry. D. the average size of the firms in an industry.
Related to the Economics in Practice on page 707: Which of the following is not one of the MDG concerns?
A. stunting B. investment opportunities for the poor C. gender equality D. hunger