The above figure illustrates the labor market for fast food restaurants in a small city in Peru. What would be the effects of a minimum wage imposed at $4 per hour?
A) a shortage of 200 hours
B) a shortage of 100 hours
C) a surplus of 200 hours
D) nothing because the minimum wage has no effect on the equilibrium price and quantity
D
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On an average, growth in per capita income is associated with a:
A) fall in inequality. B) fall in poverty. C) rise in poverty. D) rise in inequality.
Which of the following pairs of goods are most likely substitutes?
A) DVDs and DVD players B) cola and lemon lime soda C) lettuce and salad dressing D) peanut butter and gasoline
Which of the following antebellum transportation innovations was financed primarily by government funds?
a. the Erie Canal b. the New Orleans steamboat c. the Lancaster Turnpike d. the Ann McKim clipper ship
Martin is in the market for a new television set. He is deciding between two sets: one is rather expensive but offers a guarantee; the other has a lower price but offers no guarantee. Martin's decision to buy the expensive set would indicate that:
a. Martin does not know a good deal when he sees it. b. Martin interpreted the guarantee as a signal of quality. c. Martin did not shop around to get a better deal. d. Martin is not maximizing his utility. e. Martin has a high income.