Minimum wage laws
a. creates a surplus of labor in markets where the equilibrium wage is above the minimum wage.
b. cannot be valid unless labor unions are sufficiently powerful to force enactment of those laws in the first place.
c. are likely to have a greater effect on unskilled-labor markets than on skilled-labor markets.
d. All of the above are correct.
c
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Economies of scope exist when a business becomes more efficient by
A) offering fewer services. B) offering more services. C) becoming larger. D) becoming smaller.
Unions can increase their wage rates by
a. all of the following b. decreasing the supply of labor c. using the threat of a strike d. increasing the proportion of union workers in the industry e. increasing the demand for the product they produce and, therefore, the demand for their labor services
During the 2008 financial crisis velocity decreased. This means that the rate at which money changed hands
a. decreased. Other things the same, a decrease in velocity decreases the price level. b. decreased. Other things the same, a decrease in velocity increases the price level. c. increased. Other things the same, an increase in velocity decreases the price level. d. increased. Other things the same, an increase in velocity increases the price level.
If deflation occurs and your income is fixed, your real income:
What will be an ideal response?