Consider the labor market below. Suppose the government passes a minimum wage requiring employers to pay at least $8.00 per hour. 
Employment will fall by ________ person-hours per day as a result of the minimum wage.
A. 4,000
B. 8,000
C. 6,000
D. 2,000
Answer: A
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If the quantity supplied of candy increases by 10% when the price of candy increases by 20%, which of the following is TRUE?
A) Supply for candy is elastic, and price elasticity of supply = 2.0. B) Supply for candy is inelastic, and price elasticity of supply = 2.0. C) Supply for candy is elastic, and price elasticity of supply = 0.5. D) Supply for candy is inelastic, and price elasticity of supply = 0.5.
Higher interest rates motivate:
A. firms to invest less in new factories and working capital. B. firms to invest more in new factories and working capital. C. individuals to spend more on consumption goods. D. individuals to spend more on capital goods.
Which of the following can shift the demand curve for labor to the right?
a. decrease in the price of the good b. increase in the wage rate c. decrease in the wage rate d. decrease in the marginal physical product e. increase in labor productivity
Full-cost transfer-pricing frequently:
A. understates the opportunity costs of external transfers. B. understates the opportunity costs of internal transfers. C. overstates the opportunity costs of internal transfers. D. overstates the opportunity costs of external transfers.