If an increase in the government-imposed minimum wage pushes the price (wage) of unskilled labor above market equilibrium, which of the following will most likely occur in the unskilled labor market?
A. An increase in quantity of unskilled labor demanded.
B. A decrease in the quantity of unskilled labor supplied.
C. A shortage of unskilled labor.
D. A surplus of unskilled labor (unemployment).
Answer: D
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If an employer begins to pay higher wages to white workers, then in the short run
a. wages for white workers would fall b. wages for nonwhite workers would rise c. profits would rise as nonwhite workers leave the firm d. output will increase and prices will fall e. profits would fall as nonwhite workers leave the firm
Suppose that monetary neutrality holds. Of the following variables, which ones do not change when the money supply increases?
a. real interest rates b. inflation c. the price level d. real output e. real wages f. nominal wages
The high-growth Asian economies have been more open to imports than most developing countries
Indicate whether the statement is true or false
Refer to the above figure. Given the indifference map and budget constraint represented above, the consumer will maximize utility when she consumes at
A. point A. B. point B. C. point C. D. either points A or B.