Those who oppose minimum wage legislation argue that:
A. workers deserve a basic standard of living.
B. setting a wage above the market-clearing equilibrium creates unemployment.
C. the way to get an efficient labor market is for government intervention.
D. it should be set below the market-clearing equilibrium.
Answer: B
You might also like to view...
If the price of x falls, the budget constraint:
a. shifts outward in a parallel fashion. b. shifts inward in a parallel fashion. c. rotates outward about the x-intercept. d. rotates outward about the y-intercept.
A detail from the text: OPEC is an acronym for the world's most famous cartel. The acronym stands for
a. Oil and Petroleum Export Cartel b. Organization of Producers of Exported Crude c. Organization of Production and Exchange Countries d. Organization of Petroleum Exporting Countries e. Oil and Petroleum Extraction Countries
Supply-side economists believe that, in general,
A. by raising tax rates we can raise tax revenue. B. by lowering tax rates we can raise tax revenue. C. tax rates have very little effect on tax revenue. D. tax rates are much too low.
Stan buys a 1966 Mustang for $2,000, planning to restore and sell the car. He goes on to spend $8,000 restoring the car. At this point he can sell the car for $9,000. As an alternative, he can spend an additional $3,000 replacing the engine. With a new engine the car would sell for $12,000. Stan should
a. complete the repairs and sell the car for $12,000. b. sell the car now for $9, 000. c. never try such an expensive project again. d. be indifferent between (i) selling the car now and (ii) replacing the engine and then selling it.