A minimum wage
A) increases all workers' surplus because the wage rate increases.
B) increases consumer surplus because the price of the good decreases.
C) decreases the firms' surplus because fewer workers are hired at the higher wage.
D) increases the firms' surplus and the workers' surplus because it increases the efficiency of the labor market.
E) None of the above answers is correct.
C
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All of the following apply to the description of a market in equilibrium except: a. quantity supplied equals quantity demanded. b. the intersection of the supply and demand curves. c. no excess supply exists
d. no excess demand exists. e. the price of the good is falling.
A ten-year-old boy spent his allowance on a soccer ball and a baseball glove. He said he could not be happier buying anything else. The price of the ball was $5, while the price of the glove was $10 . If the marginal utility he received from the ball was 15 utils, then:
a. the marginal utility he received from expenditure on the glove was 3 utils. b. the marginal utility he received from expenditure on the glove was 30 utils. c. the total utility per dollar he received from expenditure on the glove was 3 utils. d. the total utility per dollar he received from expenditure on the glove was 10 utils. e. the marginal utility he received from the expenditure of the glove was 10 utils
It is always in the interests of workers for the minimum wage to be as high as possible.
Answer the following statement true (T) or false (F)
Refer to the diagram. A government-set price floor is best illustrated by:
A. price A.
B. quantity E.
C. price C.
D. price B.