A minimum wage that is set below the equilibrium wage will:
A. cause increased unemployment.
B. have no effect on employment.
C. cause the overall wage to increase.
D. cause the overall wage to decrease.
Answer: B
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Which of the following represent expansionary fiscal policy?
A) an increase in marginal individual income tax rates B) an increase in average individual income tax rates C) a cut in corporate income tax rates D) a reduction in government spending
The accompanying table below shows the relationship between the number of times you get your car washed each month and your total monthly benefit from car washes. Each car wash costs $15. Number of Car Washes Per MonthTotal Monthly Benefit from Car Washes0$01$202$363$484$565$60 What is the marginal cost of the 5th car wash each month?
A. $15 B. $4 C. $14 D. $12
An expenditure schedule model with no government sector shows the relationship between
A. C and national product. B. C and disposable income. C. C + I and national income. D. GDP and disposable income.
Suppose the production function is given by Q = 3K + 4L. What is the average product of capital when 10 units of capital and 10 units of labor are employed?
A. 4 B. 3 C. 45 D. 7