A minimum wage set above the equilibrium wage rate ______.
Fill in the blank(s) with the appropriate word(s).
Creates unemployment
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The idea that all aspects of economic behavior, such as labor supply, saving, and investment, respond to economic incentives, especially tax rates, is known as
A) New Keynesian economics. B) new classical economics. C) tax-structured classical economics. D) supply-side economics.
Which of the following best represents economic growth?
A) an increase in nominal GDP B) an increase in real GDP C) an increase in the per capita nominal GDP D) an increase in the per capita real GDP
In the ultimatum game:
A. is a multi-stage game where one player (the proposal) offers to give the second player (the recipient) some share of a fixed prize; the recipient then decides whether to accept or reject the proposal. B. is a single-stage game where one player (the proposal) offers to give the second player (the recipient) some share of a fixed prize; the recipient then decides whether to accept or reject the proposal. C. is a multi-stage game where one player (the proposal) divides a fixed prize between himself and another player (the recipient) who is an passive participant. D. is a single-stage game where one player (the proposal) divides a fixed prize between himself and another player (the recipient) who is an passive participant.
Domestic firms often claim that foreign firms have an unfair advantage because foreign workers are willing to work for very low wages
a. True b. False Indicate whether the statement is true or false