When a minimum-wage law forces the wage to remain above the equilibrium level, it
a. raises both the quantity of labor supplied and the quantity of labor demanded compared to the equilibrium level.
b. raises the quantity of labor supplied and reduces the quantity of labor demanded compared to the equilibrium level.
c. reduces the quantity of labor supplied and raises the quantity of labor demanded compared to the equilibrium level.
d. reduces both the quantity of labor supplied and the quantity of labor demanded compared to the equilibrium level.
b
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Which of the following statements is true?
A) Gold is not a scarce resource. B) Both life-saving drugs and ice cream are examples of scarce goods. C) If a scarce resource is given away for free, everyone will be able to consume it. D) Scarcity means that there is an imbalance between unlimited resources and limited wants.
What is one reason it might be difficult to dissuade people from pirating music off the Internet?
A) Consumer surplus is very high when music is pirated. B) In general, consumers get a rush from "stealing." C) Consumers mistakenly believe that the Internet is public domain. D) Producer surplus is very low when music is pirated.
A change in Real GDP in the short run can be brought about by a change in
A) the exchange rate. B) labor productivity. C) expectations of future sales. D) wealth. E) all of the above
Refer to the figure below. Suppose MC1 is the marginal cost of information and MB1 is the marginal benefit of information. Should a rational consumer pay $6 to get a 5th unit of information?
A. No, because at this price, the marginal cost of the 5th unit exceeds its marginal benefit. B. Yes, because at this price, the marginal benefit of the 5th unit equals its marginal cost. C. No, because at this price the marginal benefit of the 5th unit exceeds its marginal cost. D. Yes, because at this price, the marginal benefit of the 5th unit exceeds its marginal cost.