Which of the following is not correct?
a. Critics argue that minimum-wage laws hurt the very people they are intended to help.
b. Minimum-wage laws may increase unemployment among the groups of workers affected by the minimum wage.
c. If the demand for unskilled labor is relatively inelastic, the higher wage will produce more unemployment than if the demand for unskilled labor is relatively elastic.
d. Minimum-wage laws may benefit teenagers from middle-class families, so the policy is not a precise way to help the poor.
c
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Opponents of the minimum wage point out that the minimum wage
a. encourages teenagers to drop out of school. b. prevents some workers from getting needed on-the-job training. c. contributes to the problem of unemployment. d. All of the above are correct.
Answer the following questions true (T) or false (F)
1. If the number of firms producing mouthwash increases and consumer preference for mouthwash increases, the equilibrium price of mouthwash will definitely increase. 2. If the demand curve for a product shifts to the left and the supply curve for the product shifts to the left, the equilibrium quantity will decrease. 3. If the demand for a product decreases and the supply of the same product decreases, the equilibrium price will decrease.
Howie just bought a new digital camera to replace his old one. His old one works perfectly fine and would sell on Craigslist for $100. The fact that Howie would not pay $100 for it, yet continues to let it sit in his closet unused is explained by:
A. the implicit cost of ownership. B. the explicit cost of ownership. C. ignoring sunk costs. D. the explicit cost of sales.
________ cost refers to the full economic costs of production.
A. Total B. Total variable C. Average variable D. Marginal