The employment effect of a minimum wage increase is greater the
A. more elastic the demand for labor.
B. less elastic the demand for labor.
C. more the wage ceiling shifts the supply curve.
D. more the wage floor shifts the demand curve.
Answer: A
You might also like to view...
Over the past 40 years, there has been an increase in spending on public education without a significant increase in student performance. One explanation given by economists on why student performance has not improved is that
A) not enough funds have been spent on public education. B) schools are providing high-priced services that are not valued by parents. C) the quantity of educational services has not increased beyond the pre-subsidy equilibrium. D) too much competition for educational services.
Which of the following is the best definition of economics?
a. An investigation of the quantities and prices of the various goods produced by the nations of the world. b. A study of why inflation and unemployment periodically plague the U.S. economy. c. An analysis of how individuals and societies deal with the problem of scarcity. d. An examination of the role that money plays in the economy. e. A study of how goods and services are distributed throughout the world.
The law of supply states that, other things equal, when the price of a good rises, the quantity supplied of the good falls
a. True b. False Indicate whether the statement is true or false
The additional cost resulting from a small increase in some activity is called the:
A. opportunity cost. B. marginal benefit. C. marginal cost. D. diminishing returns of the activity.