If full employment GDP is $500 billion greater than equilibrium GDP and there is a deflationary gap of $100 billion, how much is the multiplier?
What will be an ideal response?
500/100 = 5
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The graph shows the labor market for fast-food workers in Sioux City. If the government sets a minimum wage of $7 an hour, then the labor market is ________, and marginal benefit ________ marginal cost
A) inefficient; is less than B) inefficient; equals C) efficient; equals D) inefficient; is greater than E) inefficient; cannot be compared to
The area between the market price and the supply curve provides a measure of: a. consumer surplus
b. producer surplus. c. consumer surplus plus producer surplus. d. marginal utility.
Which of the following is entrusted with the responsibility of settling trade disputes between countries?
a. The European Union b. The International Monetary Fund c. The World Trade Organization d. The International Labor Organization e. The United Nations Organization
When the quantity demanded of labor exceeds the quantity of labor supplied, the market wage rate is
a. below equilibrium b. above equilibrium c. at its equilibrium level d. equal to the workers' MRP e. equal to the workers' opportunity cost