The minimum wage is an attempt to raise the income of low-income workers
a. True
b. False
A
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The entry of China and other developing countries into the global economy ________ the value of marginal product of factory workers in the United States and ________ their wage rate
A) increases; lowers B) decreases; raises C) decreases; lowers D) increases; raises
A change that shifted the long-run aggregate supply curve to the right would also shift the short-run aggregate supply curve to the right
a. True b. False Indicate whether the statement is true or false
Economists would describe cartels as
A. the opposite of ignoring interdependence. B. a collusive arrangement. C. an undesirable form of market organization that may charge a monopoly price. D. All of the responses are correct.
Microsoft filed a lawsuit against people who sent spam (junk email) and a website owner who hosted spam services. A spokesman for Microsoft said that Microsoft was "trying to change the economics of spam" by increasing the cost of being a spammer. An economist most likely would agree with which statement about Microsoft's actions?
A. Microsoft's approach of trying to change the costs of spamming is the most efficient way to change behavior. B. A more effective approach would be to educate spammers about the costs they impose on others. C. Microsoft should not be involved because spamming is just part of the invisible hand at work and should be left alone. D. A more effective approach would be to appeal to the morals of the spammers and tell them to follow the Golden Rule.