A legally mandated minimum wage is an example of:
a. the invisible hand principle. b. a price floor.
c. a price ceiling. d. a fringe benefit.
b
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The extent of the decline in output associated with the imposition of an employment tax depends on the
A) slope of the labor supply curve. B) tax rate. C) wage rate. D) slope of the labor demand curve.
When the Fed buys securities from the public, banks' reserves ________ and the quantity of money ________
A) increase; increases B) increase; decreases C) decrease; increases D) decrease; decreases E) do not change; increases
The most commonly expressed arguments for protection tend to be largely invalid
Indicate whether the statement is true or false
The First Theorem of Welfare Economics states that:
a. only Walrasian equilibria can be Pareto optimal. b. all Walrasian equilibria are Pareto optimal. c. a Walrasian equilibrium price vector can always be found. d. some Walrasian equilibria may be unfair.