If the minimum wage were currently above the equilibrium wage, then a decrease in the minimum wage that kept it above the equilibrium wage would
a. increase the surplus of labor.
b. reduce the surplus of labor.
c. increase the shortage of labor.
d. reduce the shortage of labor,
b
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An argument in favor of foreign direct investment is that it tends to
(a) reduce inequality. (b) promote rural development. (c) increase access to modern technology. (d) decrease local ownership. (e) none of the above.
Firms that engage in price discrimination
A. will earn less profit than those that do not discriminate. B. will earn more profit than those that do not discriminate. C. are biased against certain buyers in the market. D. will always produce less output than firms that do not discriminate.
As a possible approach to eliminating the government budget deficit, increasing taxes for everyone would
A. mean only a small increase in taxes. B. lead to a large increase in taxes for every worker. C. transfer more goods and services to the government sector. D. lead to an inflationary gap.
Any transaction that involves exchanging one good for another without using money is considered a
A. liquidity transaction. B. barter transaction. C. black market exchange. D. deferred payment.