The government imposing a minimum wage is an example of an attempt to:
A. correct a market failure.
B. redistribute surplus in a market.
C. encourage the consumption of inferior goods.
D. discourage the consumption of inferior goods.
B. redistribute surplus in a market.
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The main problem with using the infant industries argument to justify protecting an industry from foreign competition is that:
a. all industries will claim that they are infant industries in order to gain protection. b. the protected industry will become too efficient and drive out foreign competition. c. once in place, it is difficult to remove protection even as the industry matures. d. it causes the goods that are produced in the protected industry to have lower prices. e. this policy compromises national security if the infant industry produces military goods.
Capital is a stock variable
a. True b. False
For a typical firm, fixed costs increase in direct proportion to the increases in output
a. True b. False Indicate whether the statement is true or false
At any quantity of output below the intersection of the marginal revenue and marginal cost curves:
A. MR is higher than MC. B. MC is higher than MR. C. ATC is lower than AVC. D. the firm would lose profits producing the units.