If a perfectly competitive firm is currently employing workers to the point where the value of the last worker's marginal product is equal to the wage rate, and the government imposes a minimum wage higher than the value of the worker's marginal
product, we can predict that A) the firm will pay the higher wage rate and not change the number of workers hired.
B) the firm will no longer employ the marginal worker.
C) the firm will increase its price.
D) the firm will employ more workers.
B
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If foreign income falls, there will be _____
a. an increase in foreign spending b. a rise in domestic aggregate demand c. no change in either domestic net exports or aggregate demand d. a decline in the domestic price level e. a decrease in domestic aggregate demand
Which of the following is correct?
a. A bank's deposits at the Federal Reserve counts as part of the bank's reserves. The Federal Reserve pays interest on these deposits. b. A bank's deposits at the Federal Reserve counts as part of the bank's reserves. The Federal Reserve does not pay interest on these deposits. c. A bank's deposits at the Federal Reserve does not count as part of the bank's reserves. The Federal Reserve pays interest on these deposits. d. A bank's deposits at the Federal Reserve does not count as part of the bank's reserves. The Federal Reserve does not pay interest on these deposits.
A decrease in competition within an industry can result in
a. more efficient resource allocation. b. lower prices. c. a firm wielding economic and political power. d. increased output.
The national debt passed the $2 trillion mark in
A. 1980. B. 1982. C. 1984. D. 1986.