Economic theory predicts that if the government imposes a minimum wage above the equilibrium wage, then:
A. firms' labor costs will fall.
B. employment will fall.
C. total economic surplus will rise.
D. all workers will be better off.
Answer: B
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To an economist, it is preferable to
A) assume that all criminals are rational. B) assume that all criminals are irrational. C) build a theory based on a rational criminal and then check the evidence. D) a or b
Explain whether you agree or disagree with the following statement: "The reason that inflation is bad is because it increases the cost of living—the costs of goods and services we buy—without increasing income in general."
What will be an ideal response?
The payments to owners of capital include
A. interest and profits. B. debt and taxes. C. wages and salaries. D. expenses and bonuses. E. All of the responses are correct.
What are the three coordination tasks that markets resolve?
What will be an ideal response?