Which of the following statements about the minimum wage is correct?
a. An increase in the minimum wage enhances the well-being of all unskilled workers.
b. An increase in the minimum wage has no effect on the well-being of middle-class families.
c. Advocates of the minimum wage argue that the demand for labor is relatively inelastic.
d. Critics of the minimum wage argue that it is an undesirable way of helping the poor because it is costly to the government.
c
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If the value of bank's loans declines, what is the corresponding reduction in a liability entry that the bank makes?
A) Deposits are reduced by the amount of the decline in the value of the loan. B) Borrowings are reduced by the amount of the decline in the value of the loan. C) Net worth is reduced by the amount of the decline in the value of the loan. D) Cash items in the process of collection are reduced by the amount of the decline in the value of the loan.
If the percent change in price is greater than the percent change in quantity demanded, then demand is price inelastic
Indicate whether the statement is true or false
Refer to Figure 28-2. The nonaccelerating inflation rate of unemployment, or NAIRU, is associated with which point rate in the figure above?
A) A B) B C) C D) all of the above
For a retailer buying from a wholesaler, volume discounts do not violate the Robinson-Patman act because
a. To sell larger volumes, the retailer himself has to offer discounts b. To sell larger volumes, the retailer has to incur costs in promoting the item c. To sell larger volumes, the retailer has to hold the items in inventory longer d. All of the above