Which of the following statements about an effective minimum wage is true?
A. Increasing the minimum wage makes it easier for unskilled workers to find jobs.
B. A minimum wage tends to create unemployment among unskilled workers.
C. A minimum wage shifts the demand curve for labor to the right.
D. A minimum wage shifts the supply curve for labor to the right.
Answer: B
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A disadvantage of the travel cost method is
a. it cannot determine monetary values b. it estimates only user value and not existence value c. it focuses on recreational use making it ineffective for commercial use d. all of the above e. (b) and (c) only
Use the following table with data for a private closed economy (an economy with only a private sector and no international trade) to answer the next question. All figures are in billions of dollars.Domestic Output or Income (RGDP = DI)Consumption$540$540560555580570600585620600640615660630If gross investment is $25 billion, the equilibrium level of real GDP will be
A. $620 billion. B. $600 billion. C. $640 billion. D. $660 billion.
Using the data in the table above, when the price of a skirt rises from $20 to $35, what is the price elasticity of demand? (Use the midpoint method.)
A) 0.33 B) 0.25 C) 1.00 D) 1.33 E) 3.00
Microsoft's success over Apple although Apple had a technologically superior product is the result of:
a. increasing returns in a network-based business b. Microsoft's economies of scale over a wide range of output c. the revenue sources derived from Microsoft's intellectual property d. superior marketing and promotions e. all of the above