If minimum wage legislation does not cause unemployment, then:
A. those who work for minimum wage will benefit.
B. firms will generally gain by earning higher profits.
C. most likely the government won't study how minimum wage legislation may affect employment.
D. minimum wages may still be binding for many employees.
Answer: A
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The consumption function shifted upward from 1960 to 2013 because as economic growth brought ________ expected future income and ________ wealth, people chose to ________ their consumption expenditure from a given level of income
A) higher; greater; decrease B) lower; greater; increase C) higher; less; increase D) higher; greater; increase E) higher; less; decrease
Professional athletes often have contract clauses prohibiting risky activities such as skiing and motorcycle riding. These clauses are
A) limited-liability clauses. B) risk insurance. C) restrictive covenants. D) illegal.
Which of the following statements is NOT true of external benefits?
A) External benefits lead to an underallocation of resources to the production of the good that has the external benefit. B) External benefits lead to a price in the market that is too high. C) External benefits lead to too few of the goods that have the external benefit being produced. D) External benefits are a good thing for the allocation of resources because people are getting something at no cost.
An important prerequisite for the price system to work is an economy-wide respect for _______ rights
Fill in the blank(s) with correct word