If the market wage for fast-food restaurants is $11 and the government enforces a minimum wage of $7, the unemployment rate will
A. Increase as quantity of labor supply decreases and quantity of labor demand increases.
B. Increase as quantity of labor supply increases and quantity of labor demand increases.
C. Not be affected by the minimum wage.
D. Increase as quantity of labor supply increases and quantity of labor demand decreases.
Answer: C
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If the level of technology rises from 8 to 8.2 in one period, the growth rate of technology is ________
A) 2.5 percent B) 20 percent C) two percent D) 0.2 percent
Oligopoly differs from monopolistic competition in that an oligopoly includes
A) product differentiation. B) barriers to entry. C) no barriers to entry. D) downward-sloping demand curves facing the firm.
Eight years ago you purchased an asset for $100,000 that has yielded a nominal capital gain of $30,000. If you sold the asset today, your inflation-adjusted capital gains would be zero due to inflation over the last eight years. The capital gains tax is 28 percent. If you sold the asset today your tax liability would be
A. zero. B. $28,000. C. $8,400. D. cannot be determined without more information.
When regulators identify with the special interests of the industry they regulate, this behavior conforms with the
A. lemon market hypothesis. B. rate-of-return hypothesis. C. capture hypothesis. D. share-the-gains, share-the-pains hypothesis.