Minimum wage laws contribute to a higher unemployment rate by
A. pushing wages below the market clearing level in all labor markets.
B. raising wages above the market clearing level in some labor markets.
C. raising wages above the market clearing level in all labor markets.
D. pushing wages below the market clearing level in some labor markets.
Answer: B
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Polonia produces two goods - X and Y. The quantity produced of the two goods and their prices in two different years are given in the table below:
Year Good X Price Good X Quantity Good Y Price Good Y Quantity 1 $10 100 $12 250 2 $25 120 $22 300 i) Calculate the real GDP of Polonia in Year 2 taking Year 1 as the base year. ii) What is the growth rate of Polonia's real GDP between Year 1 and Year 2?
Bananas and apples are substitutes. When the price of bananas rises, and a technological advance in apple production occurs at the same time
A) the equilibrium price of apples rises and the equilibrium quantity of apples falls. B) the equilibrium price of apples rises and the equilibrium quantity of apples might rise or fall. C) the equilibrium quantity of apples rises and the equilibrium price of apples might rise or fall. D) the equilibrium price of apples rises and the equilibrium quantity of apples rises.
Answer the following statements true (T) or false (F)
1) The present value of a bond is the only price that buyers are willing to spend on the bond and the only price sellers are willing to accept for the bond. 2) Junk bonds sell for higher prices than non-junk bonds. 3) The present value of a bond is the only price that buyers are willing to spend on the bond and the only price sellers are willing to acce244) A profit-maximizing manager should always calculate the net present value and use the net present value rule to evaluate any business decision that involves the payment or receipt of money at different times in the future.pt for the bond. 4) Profit-maximizing managers should make efforts to receive profits in future and incur costs in the present. 5) Interest paid of debt-financed investments is referred to as a tax shield.
A newspaper headline reads: "Fed Cuts Federal Funds Rate for Fifth Time This Year." This headline indicates that the Federal Reserve is most likely trying to:
a. Tighten monetary policy b. Raise interest rates c. Ease monetary policy d. Reduce inflation in the economy