Which of the following is a possible outcome of a minimum wage imposed by a government?
a. It leads to an increase in consumer surplus
b. It favors women and children and helps improve their standard of living.
c. It eradicates the problem of unemployment from the market.
d. It creates a labor surplus or unemployment.
e. It creates a labor deficit.
d
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The Fed conducts an open market operation and buys $50,000 of government securities from Commerce Bank. The desired reserve ratio is 25 percent. What is the change in Commerce Bank's total reserves and its excess reserves?
What will be an ideal response?
Macland is specializing and trading with Microland. Where will Macland be on its production possibility frontier?
a. It will be on the PPF. b. It will be inside the PPF. c. It will be outside of the PPF. d. It will be shifting the PPF out.
What does NOT occur in a fully employed economy?
A. Cyclical unemployment B. Discouraged workers C. Frictional unemployment D. Structural unemployment
Which of the following decreases supply in the market for pizza?
a. Pizza shop employees successfully organize a union and negotiate a pay increase. b. Cheese prices drop because price supports for dairy farmers are removed. c. Suppose that some hot sandwich shops can also produce pizzas, and consumer demand for hot sandwiches declines sharply, reducing the profitability of producing hot sandwiches. d. The Surgeon General announces that eating pizza reduces the incidence of stomach cancer.