Economists who support minimum-wage legislation are likely to believe that the
a. demand for unskilled labor is relatively inelastic.
b. demand for unskilled labor is relatively elastic.
c. supply of unskilled labor is relatively elastic.
d. supply of unskilled labor is relatively inelastic.
a
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When the price of a pizza decreases from $14 to $12
A) the income effect means people buy less pizza. B) the income effect points out that the total purchasing power of people who buy pizza increases. C) the income effect means that the demand for pizza will not change. D) None of the above answers is correct.
The government passed the Economic Recovery Act in October 2008 to prevent the financial crisis from continuing to worsen. A controversial component of this act was the
A) temporary decrease in the federal deposit insurance limit. B) sale of new subprime mortgage assets. C) borrowing of $150 million from AIG. D) Troubled Asset Relief Program (TARP).
The principal difference between economic profits for a monopolist and for a competitive firm is that
a. monopoly profits create major problems of equity whereas competitive profits do not. b. competitive profits exist only in the short run whereas monopoly profits may exist in the long run as well. c. monopoly profits represent a transfer out of consumer surplus whereas competitive profits do not.monopoly profits are considered a deadweight loss but competitive profits are not. d. monopoly profits are considered a deadweight loss but competitive profits are not.
What is the? short-run effect of increased deficit spending on an economy experiencing a recessionary? gap?
a. Aggregate demand will increase, creating an inflationary gap. b. Aggregate demand decreases, and the gap widens. c. Aggregate demand increases and the gap closes. d. None of the above