Some policymakers claim that raising the minimum wage will result in economic growth. If increasing the minimum wage would actually generate economic growth, we would expect to eventually see nominal wages ________ and unemployment ________
A) rise; rise
B) rise; fall
C) fall; rise
D) fall; fall
B
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Consider the perfectly competitive firm in the above figure. At the profit maximizing level of output, the firm is
A) incurring an economic loss equal to $119.00. B) incurring an economic loss equal to $123.50. C) incurring an economic loss equal to $187.00. D) making zero economic profit.
Surgical specialists earn more than general/family practice physicians do.Which of the following statements is not true regarding this income differential?
a. Surgeons will always earn more than general practitioners because they are smarter than general practitioners. b. Surgeons earn more than general practitioners because cutting into people is risky. c. Surgeons earn more because their practice costs, including medical malpractice insurance, are higher. d. Surgeons earn more to compensate them for the extra years spent as residents. e. Physicians' incomes are determined largely by supply and demand conditions with respect to each specialty.
When oligopoly firms collude to raise prices,
A. Each firm benefits, but society loses. B. Only the price leader benefits while other firms and society lose. C. Both the colluding firms and society benefit. D. Everyone is eventually a loser.
Which of the following examples shows a price change in the most elastic range of a linear demand curve?
a. The price of CloseShave electric razors falls from $120 each to $100 each. b. The price of CloseShave electric razors falls from $100 each to $85 each. c. The price of CloseShave electric razors falls from $85 each to $80 each. d. The price of CloseShave electric razors increases from $80 each to $100 each.