How might a law setting minimum wage below the equilibrium point have an unintended effect?
A) The effect might be less demand for workers.
B) The law might result in wages lower than the equilibrium wage.
C) The actual wages earned by workers might be higher than the equilibrium.
D) The equilibrium point might shift upward in response to the minimum wage law.
Answer: B) The law might result in wages lower than the equilibrium wage.
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Studies by the World Bank have underscored the successes of countries that have adopted trade liberalization policies
a. True b. False
Which of the following tend to be at a disadvantage in periods of rising prices?
a. debtors. b. people with fixed incomes. c. salespeople whose commissions are very susceptible to price changes. d. All of these.
The political attractiveness of tariffs, quotas, and other trade restrictions is primarily the result of
A) the political clout of domestic consumers. B) the attractiveness of sound economic policies to elected political officials. C) the special interest nature of trade restrictions. D) the political clout of foreigners.
If the demand for money increases and the monetary authorities want interest rates to remain unchanged, which of the following would be appropriate policy?
What will be an ideal response?