One result of a minimum wage is
A) illegal hiring of people at wages below the minimum wage.
B) more people with jobs.
C) a change in the equilibrium wage.
D) lower costs paid by firms.
E) fewer people searching for work because they realize that firms have decreased the number of people hired.
A
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In 2001, Costa Rican real GDP grew by 5 percent, well above the 2.5 percent trend line of its long-run annual average economic growth rate. In all probability, Costa Rica was in its ________ phase of the business cycle
a. recession b. recovery c. downturn d. prosperity e. trough
Which exchange rate is nearest the launch rate for the Euro against the Dollar?
(a) Parity. (b) Euro equals $1.18. (c) Euro equals $1.05. (d) Euro equals $1.24.
Answer the following statement(s) true (T) or false (F)
1. In the absence of transactions costs, changes in property rights have no effect on economic efficiency. 2. In the absence of transactions costs, changes in property rights have no effect on the distribution of income. 3. Changes in property rights will not affect the allocation of resources as long as transactions costs are zero and the subsequent effects on market demand are negligible. 4. The weak Coase theorem is true when reallocation of property rights have negligible income effects . 5. According to the Coase Theorem, in the absence of transactions costs, recipients of an external benefit can be expected to offer a bribe in exchange for greater production.
Ad valorem taxes
A) are not used in the United States. B) are assessed as a percentage of a good's price. C) are based on income levels. D) are applied only to imports.