The "macroeconomics" rebuttal to the traditional analysis of the minimum wage argues that
A. people work harder when they feel they are inadequately compensated, therefore an increase in the minimum wage may actually lower productivity.
B. in the short-run, the demand elasticity of labor is such that businesses will actually increase the number of workers hired when the minimum wage increases.
C. the rich consume more than the poor out of extra income, therefore an increase in the minimum wage increases aggregate demand.
D. the rich consume less than the poor out of extra income, therefore an increase in the minimum wage increases aggregate demand.
Answer: D
You might also like to view...
Suppose an increase in price decreases quantity demanded from 210 to 190. Using the mid-point formula, the percentage change in quantity demanded is:
A. 2 = 200 percent. B. 0.2 = 20 percent. C. 0.2 = 20 percent. D. 0.1 = 10 percent
Diversification involves:
A. buying only one kind of stock. B. buying only low-risk bonds. C. investing all your money in one company. D. None of these statements is true.
Which of the following is correct?
a. If the Fed purchases bonds in the open market, then the money supply curve shifts right. A change in the price level does not shift the money supply curve. b. If the Fed sells bonds in the open market, then the money supply curve shifts right. A change in the price level does not shift the money supply curve. c. If the Fed purchases bonds, then the money supply curve shifts right. An increase in the price level shifts the money supply curve right. d. If the Fed sells bonds, then the money supply curve shifts right. A decrease in the price level shifts the money supply curve right.
Which of the following countries has the greatest percentage of people living in extreme poverty?
A. China. B. India. C. Bolivia. D. Congo.