A study of the effects of the minimum wage on employment of low-skilled workers estimated the price elasticity of demand for low-skilled workers is -0.75
Suppose that the government is considering raising the minimum wage from $7.25 per hour to $7.75 per hour. Based on this information, calculate the percentage change in the employment of low skilled workers. Use the midpoint formula.
percent change in quantity demanded = -5 percent.
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The unemployment rate tends to be higher in the European Union as compared to the United States
Indicate whether the statement is true or false
In a small country, there are 5,000 people in the labor force and 3,000 people are employed. The labor force participation rate equals
A) 40 percent. B) 60 percent. C) 62.5 percent. D) an undetermined amount given the lack of information.
Borrowing VCU3 from an online company cause the nation's:
a. M2 money supply to rise. b. M2 money supply to fall. c. M2 money multiplier to fall. d. Monetary base to remain the same.
The government reduces the corporate profits tax. As a result, corporate profits increase. This will ________ the nonlabor income of households, causing consumption to ________ and labor supply to ________.
A. decrease; decrease; decrease B. increase; increase; increase C. increase; increase; decrease D. decrease; decrease; increase