If the minimum wage is set at a level above the equilibrium wage:
A. it will have no effect.
B. it could cause unemployment.
C. it will be a nonbinding minimum wage.
D. All of these are true.
Answer: B
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The price elasticity of demand for widgets is -0.80. Assuming no change in the demand curve for widgets, a 16% increase in sales implies a _______ reduction in price.
A. 40% B. 1% C. 12% D. 20%
Change in the price of a good causes the demand schedule for that good to shift.
Answer the following statement true (T) or false (F)
Which one of the following statement is false?
A) Traditional and ecological economics may come up with different policy recommendations B) Most standard natural resource and environmental economics is an extension of microeconomic theory C) Cost-benefit analysis excludes the values of non-marketed goods D) Valuation techniques may be insufficient to capture the scope of global environmental problems
The purpose of antitrust policy is to:
A. promote competition among firms. B. increase profits to firms. C. protect domestic firms from foreign trade. D. achieve scale economies in production.