Suppose you were to hear a politician oppose the minimum wage on the grounds that it would hurt employers and employees more than it would help those who earned a higher wage, you would know this person to be relying on the ________ argument.
A. work effort
B. elasticity
C. consumer and producer surplus
D. macroeconomic
Answer: C
You might also like to view...
If a commodity is inexpensive and its total utility is great,
A. it is an inferior good. B. it is plentiful. C. its marginal utility is high. D. the ratio of price to marginal utility is very high.
An increase in the price level results in a(n) ________ in household consumption spending and a(n) ________ in investment spending
A) decrease; increase B) increase; decrease C) increase; increase D) decrease; decrease
Which of the following actions could be undertaken if the government wants to reduce an inflationary gap?
A) Increase taxes and reduce government spending. B) Reduce taxes and increase government spending. C) Increase taxes and increase government spending. D) Reduce taxes and reduce government spending.
Tradable allowances are like taxes in that they both:
A. impose a quota on output. B. maximize surplus. C. are not efficient. D. None of these statements is true.