The minimum wage is a
A) factor that decreases unemployment because fewer people search for work if the minimum wage is increased.
B) possible cause of job search because it lowers wages below their equilibrium.
C) possible cause of job rationing because it raises wages above their equilibrium.
D) possible cause of job rationing because it lowers wages below their equilibrium.
E) government established highest wage that is legal to pay.
C
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Looking at the components of the income approach we see that
A) compensation of employees is the largest category. B) consumption is the largest category. C) profits are the largest category. D) rental income is the largest category.
When U.S. Steel, a steel producer, bought control of iron ore companies at the beginning of the 20th century, the company was initiating
A) a horizontal merger. B) a vertical merger. C) a cartel. D) an expropriation.
GDP is a flow variable because
a. all macroeconomic aggregates are flow variables b. it measures the production that takes place over a period of time c. it measures the amount of goods and services that exist at the end of a time period d. the number of goods and services produced is usually a fixed number e. it accounts for the goods and services transferred from one firm to another
Which of the following groups would most likely benefit from a law that is extremely tough on those who drink and drive?
a. truck drivers b. taxi drivers c. bartenders d. doctors and nurses