A minimum wage law prohibits employers from paying workers less than a specified hourly wage. If the minimum wage is above the equilibrium wage:
A. there will be an excess demand for labor.
B. employment levels will not fall.
C. there will be an excess supply of labor.
D. it creates a price ceiling.
Answer: C
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A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease E) increase; not change
A photograph processing machine company requiring customers that buy a processing machine to purchase chemicals and photographic paper from them is an example of
A) bundling. B) a requirement tie-in sale. C) quantity discrimination. D) a two-part tariff.
Which of the following is not an example of a country's infrastructure?
a. Educational system b. Political system c. Communications system d. Transportation system
Which of the following explains why mortgages weren't considered securities prior to 1970?
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