What is a minimum wage? What are the effects of a minimum wage set below the equilibrium wage rate?
What will be an ideal response?
A minimum wage is a regulation that makes it illegal to pay or receive a wage rate lower than a specified level. If a minimum wage is set below the equilibrium wage, the minimum wage has no effect because it does not make the equilibrium wage rate illegal.
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Economists believe that people's wants are
a. limited by their incomes b. insatiable c. scarce d. mostly irrational e. mostly psychological
Among the views shared by some of the different schools is
a. the Keynesian and the supply-side economics schools' views on the need to stimulate aggregate demand b. the classical school and the Keynesian schools' views on the flexibility of prices c. rational expectations and the neo-Keynesian schools' views on the government's ability to change the economy's long-run employment position d. the Keynesian and the rational expectations schools' views on the role of expansionary monetary policy e. the Keynesian and the monetarist schools' views on the role of the Federal Reserve
Subsidizing coal mining and orange growing have both been found to be economically inefficient in that the costs outweigh the benefits. However, a subsidy on coal mining would help the coal producers in West Virginia and a subsidy on orange growing would help the orange farmers in Florida. So the senator from West Virginia approaches the senator from Florida and says that he will vote for the
orange subsidy if the Florida senator votes for the coal-mining subsidy. The Florida senator agrees. Which term best describes what just happened? a. the shortsightedness effect b. logrolling c. the use of user charges d. the political voter theory
Currencies that are not backed by precious metals of equal value are called:
a. Legal tender. b. "Trouble" – with a capital "T." c. Near money. d. Repurchase agreements. e. Fiat money.