If a minimum wage law is passed imposing a price floor above the equilibrium price of unskilled labor and employers increasingly used efficiency wages, it would ___ unemployment and ____ the natural rate of unemployment:
a. Increase; increase
b. Increase; not change.
c. Not change, increase.
d. Do none of the above.
a
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Describe the effects of the reunification of eastern and western Germany in 1990 on both Germany and its neighboring European countries using the AA-DD framework
What will be an ideal response?
Inflation is measured by an increase in:
a. homes, autos and basic resources. b. prices of all products in the economy. c. the consumer price index (CPI). d. none of these.
For firms operating in a perfectly competitive market, price must always be greater than marginal revenue
a. True b. False Indicate whether the statement is true or false
In POW camps during World War II, nearly everything was traded for cigarettes. For example, one bar of soap cost two cigarettes, and two candy bars cost four cigarettes. During the time of the POW camps, cigarettes:
A. served as money for those who smoked. B. did not serve as money because their value was not backed by government. C. served as money because they served as a unit of account, medium of exchange, and store of wealth. D. did not serve as money because no one controlled the supply of cigarettes.