The federal minimum wage in 2010 was $7.25. If this wage rate was less than the equilibrium wage, what is the effect?
A) The minimum wage does not create unemployment.
B) The number of people who want to work at the minimum wage is the same as the number of available jobs.
C) The number of people who want to work at the minimum wage is greater than the number of available jobs.
D) Deadweight loss exists.
A
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Does fiscal policy affect monetary policy?
A) No, because real output and income can and sometimes do move in the opposite direction from nominal money output and income. B) Yes, because the Fed and the Treasury naturally tend to pursue similar goals. C) Yes, because government deficits or surpluses affect the total demand for credit. D) Yes, because the government usually prints new money to finance deficits and retires that money when it runs a surplus.
What is the future value of $100 in 2 years that earns an annual interest rate of 5 percent?
A) $110.41 B) $102.25 C) $110.25 D) $105.50
Coins and dollar bills are money in the form of:
a. barter. b. currency. c. capital stock. d. investment.
What happens when an innovation has positive externalities?
a. The cost of innovation will increase. b. There will be more innovation than needed. c. There will be less innovation than needed. d. The cost of innovation will decrease.