Which of the following is true?
a. If minimum wage is set below the equilibrium wage, it leads to a labor surplus
b. If anything interferes with the voluntary exchanges that make up a market, equilibrium does not occur.
c. Minimum wage helps deal with the problem of unemployment in the market for unskilled labor.
d. Producers are willing to employ more labor at a minimum wage.
e. Minimum wage leads to a situation of labor deficit in a market.
b
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Pricing between two networks that are completing each other's calls is not affected by the volume of calls going in the two directions
Indicate whether the statement is true or false
The assumption that preferences are complete:
A) means that a consumer will spend her entire income. B) is unnecessary, as long as transitivity is assumed. C) recognizes that there may be pairs of market baskets that cannot be compared. D) means that the consumer can compare any two market baskets of goods and determine that either one is preferred to the other or that she is indifferent between them.
If the government lowered the capital gains tax, what would be the effect in the loanable funds market? (Assume the government does not run a budget deficit.)
a. Both the supply and demand for funds would increase, lowering the interest rate and raising investment spending. b. The supply of funds would decrease, raising the interest rate and lowering investment spending. c. The supply of funds would decrease, lowering both the interest rate and investment spending. d. The supply of funds would increase, lowering both the interest rate and investment spending. e. The supply of funds would increase, lowering the interest rate and raising investment spending.
Which of the following is a wealth effect that would most likely cause a decrease in the quantity of real GDP demanded in a nation, ceteris paribus?
a. France experiences a decrease in the general level of prices in its economy. b. South African consumers become richer following a decline in the overall price level. c. The Mexican economy experiences several years of increasing price levels. d. U.S. consumers are encouraged to spend more due to low interest rates.