A firm will shut down in the short run if
A. fixed costs exceed revenues.
B. variable costs exceed revenues.
C. total costs exceed revenues.
D. it is suffering a loss.
Answer: B
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The price elasticity of the supply of teenage labor services is approximately 1.36. Suppose the minimum wage rises from $7.25 per hour to $8.75. Using the midpoint formula, what is the approximate change in the quantity of teenage labor supplied?
A) 7.3 percent B) 14.4 percent C) 25.5 percent D) There is insufficient information to answer the question.
What is the government purchases multiplier if the tax rate is 0.1 and the marginal propensity to consume is 0.9? Assume the economy is closed
A) 5.3 B) 10 C) 11.1 D) 100
The "implicit debt" accompanying the Social Security and Medicare programs is
a. substantially greater than the national debt. b. approximately equal to the national debt. c. about half the size of the national debt. d. about one tenth the size of the national debt.
In 2015, President Obama proposed increasing the minimum wage from $7.25/hr to $10.10/hr. According to theory, what would likely be the result of such an increase?
A. Unemployment would increase as firms lay off workers. B. Firms would hire more workers. C. All workers prior to the wage increase would now earn at least $10.10 per hour. D. Some workers would leave the labor market.