President Obama is hoping to increase the federal minimum wage to $10.50 per hour. Use a diagram to illustrate the effect this increase would have on unskilled labor if:1) demand for labor is nearly vertical.2) demand for labor is very elastic 
What will be an ideal response?
As the diagram above shows, the unemployment created by the law would be much lower with a nearly vertical demand for labor (L1-L3), than with an elastic one (L1-L2).
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When the nominal interest rate falls, there is
A) a leftward shift of the demand for money curve. B) a downward movement along the demand for money curve. C) no movement along the demand for money curve and the curve does not shift. D) a rightward shift of the demand for money curve. E) an upward movement along the demand for money curve.
The figure above shows the money market. At which interest rate are people selling bonds and thereby changing the interest rate?
A) 4 percent B) 5 percent C) 6 percent D) 6 percent and 4 percent E) 6 percent, 5 percent, and 4 percent
Refer to Table 11-2. What is the marginal product of the 4th worker?
A) 230 bushels B) 57.4 bushels C) 50 bushels D) 12.4 bushels
A patent is a(n)
a. government grant to an innovating firm of monopoly privilege in the production of a good or the use of a technology for a 17-year period b. annual award of monopoly privilege to a firm for the most creative invention of the year c. payment from the government to a firm for the most creative invention of the year d. grant of perpetual monopoly rights to a firm issued by the government e. expression of monopoly power in a monopolistically competitive industry