Refer to Table 4-7. If a minimum wage of $11.50 is mandated there will be a
A) shortage of 40,000 units of labor. B) surplus of 20,000 units of labor.
C) surplus of 40,000 units of labor. D) shortage of 20,000 units of labor.
C
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Marginally attached workers fall into which of the following population categories?
A) employed B) unemployed C) labor force D) not in the labor force
Vertical integration may be motivated by all of the following except:
a. Upstream market power b. Economies of ever wider spans of managerial control c. Technological interdependencies d. Reduced search and bargaining cost e. The hold-up problem.
Which of the following is a possible impetus for a banking panic?
a. An individual bank fails. b. A large, very important bank fails. c. Congress increases the amount of demand deposits that are protected by insurance. d. Banking rules change to make it harder for banks to make bad loans. e. Changes in the discount rate.
Suppose that with 1 unit of labor, Canada can produce 40 TVs or 20 computers. With 1 unit of labor, Taiwan can produce 30 TVs or 10 computers. Which of the following is correct?
a. Taiwan has a comparative advantage in the production of computers. b. Canada has an absolute advantage in the production of neither good. c. Canada has a comparative advantage in the production of computers. d. Taiwan has an absolute advantage in the production of computers. e. Taiwan has an absolute advantage in the production of TVs.