The above figure represents the market for teenage workers at fast-food restaurants in Kansas City
a) What is the equilibrium wage rate and employment?
b) Describe the market at a wage rate of $6 per hour.
c) Describe the market at a wage rate of $12 an hour.
d) How would an increase in the number of young, married college graduates, who tend to eat at fast-food restaurants, affect the figure, the equilibrium wage rate, and employment?
a) The equilibrium wage rate is $8 an hour and the equilibrium quantity of employment is 4,000 workers.
b) If the wage rate is $6 an hour, the quantity of labor supplied is less than the quantity of labor demanded. There is a shortage in the market.
c) If the wage rate is $12 an hour, the quantity of labor supplied is greater than the quantity of labor demanded. There is a surplus in the market.
d) An increase in the number of people who eat in fast-food restaurants will increase the demand for workers at fast-food restaurants. As a result the demand for labor curve will shift rightward and the equilibrium wage rate and equilibrium quantity of employment will both increase.
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Currently, a three-year Treasury note pays 4.75%. Assuming that your tax rate is 20%, what is the minimum interest rate that you would you need to earn on a tax-free municipal bond in order to buy it instead?
A) 0.95% B) 3.8% C) 5.7% D) 15.25%
Since World War II, the size of the U.S. national debt relative to income
a. increased continuously. b. decreased continuously. c. increased and then decreased. d. decreased and then increased.
The U.S. experience with tax cuts and tax increases since 1975 suggests that
a. tax cuts always stimulate consumption spending. b. tax changes have a stable and predictable effect on consumption spending. c. temporary tax changes are less effective than permanent changes. d. tax changes have no effect on consumption spending.
The demand for labor curve depicts the inverse relationship between the wage rate and the revenue generated by each unit of labor
a. True b. False Indicate whether the statement is true or false