One way to remove the excess labor supply problem from a minimum wage policy is to have the government hire all unemployed workers at the minimum wage. What is the key drawback of this version of a minimum wage policy?
A) The deadweight loss may increase substantially.
B) The cost to the government may be very large.
C) Consumer surplus losses increase further.
D) A and B are correct.
E) B and C are correct..
D
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The variation in the rate of return one can expect from ownership of stocks will generally be smaller
What will be an ideal response?
An efficient economy is an economy
A. that distributes output equally among all consumers. B. in which output is steady or growing and there is low inflation. C. that produces what consumers demand and does so at the least possible cost. D. in which there is a fair distribution of wealth.
What is one reason suppliers might offer a discount for quantity purchases?
A) reduced storage costs B) lower marginal cost C) lower marginal benefit D) price gouging
A U.S. company that wishes to sell more to other countries would favor
A) an appreciation of the dollar. B) a depreciation of the dollar. C) neither an appreciation nor a depreciation of the dollar. D) higher interest rates.