Select the normative statement that completes the following sentence: If the minimum wage is raised:
a. cost per unit of output will rise.
b. workers will gain their rightful share of total income.
c. the rate of inflation will increase.
d. profits will fall.
b
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Which of the following transitional economies has become a high-income nation?
a. Czech Republic b. Kazakhstan c. China d. Vietnam e. None of the answers is correct
The lion's share of purchases and transactions in the U.S. economy are made with coins and paper money
a. True b. False Indicate whether the statement is true or false
Which of the following companies would gain from foreign currency depreciation?
a. companies which borrow in foreign currency. b. companies which export goods and services. c. companies which invest in the foreign equity markets. d. companies which buy bonds issued by the foreign government.
Suppose planting flowering shrubs creates a positive externality equal to $7 per shrub. Further suppose that the local government offers a $7 per-shrub subsidy to planters. The number of shrubs that are planted is then
a. less than the socially optimal quantity. b. greater than the socially optimal quantity. c. equal to the socially optimal quantity. d. There is not enough information to answer the question.