The minimum wage
A) is type of price ceiling.
B) is a type of price floor.
C) can create a surplus of labor.
D) Both answers A and C are correct.
D
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An example of fiscal policy is
A) a reduction in government spending. B) an increase in autonomous spending by consumers. C) a reduction in investment spending by the private sector. D) an increase in Social Security spending by the elderly.
The demand for automobiles fell when gasoline prices increased. Which of the following is likely to happen in this case, assuming all else equal?
A) The labor demand curve of automobile companies will shift to the left. B) The labor demand curve of automobile companies will shift to the right. C) The supply of labor to the automobile industry will decrease. D) The supply of labor to the automobile industry will increase.
Why did the principal-agent problem for investment banks become more severe following the repeal of the Glass-Steagall Act in 1999?
What will be an ideal response?
Refer to the above table. Suppose the price of B rises from $18 to $20. What is the cross price elasticity of demand between B and C?
A. -1.7273 B. -0.8947 C. +1.7273 D. -1.1176