To be effective in raising people's wages, a minimum wage must be set
A) above the equilibrium wage rate.
B) below the equilibrium wage rate.
C) equal to the equilibrium wage rate.
D) below $7.
E) either above or below the equilibrium wage depending on whether the supply curve of labor shifts rightward or leftward in response to the minimum wage.
A
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The Lerner Index is preferred to the Herfindahl-Hirschman Index as a measure of market power due to the former's simplicity and straightforward interpretation
Indicate whether the statement is true or false
The reward for forgoing present consumption is
a. rent b. profit c. roundabout production d. transfer payment e. interest
Suppose the nominal interest rate is 10 percent annually, and you deposit $1,000. Inflation in the economy throughout the year is 4 percent. At the end of the year, you have earned a real rate of interest of:
A. 4 percent. B. 6 percent. C. 10 percent. D. 14 percent.
The value of a loan of $500 after a year at 3 percent interest is:
A. $509. B. $1,500. C. $515. D. $565.