Consider the effect of each of the following on the unemployment? rate: a. The minimum wage law
What will be an ideal response?
has only a small effect on the unemployment rate since only a small part of the labor force earns the minimum wage.
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Which of the following is definitely not a nonexcludable public good?
A. national defense B. elementary education C. flood control D. charitable giving E. None of the above; all are nonexcludable public goods.
When economic profits are negative in a perfectly competitive industry,
a. we would expect the market supply curve to shift to the left as a result. b. we would expect the market supply curve to shift to the right as a result. c. we would not expect any change in the market supply curve to result. d. we would expect that the market demand curve to shift left as a result
An economic model is
a. a concrete representation of reality b. as close to reality as possible c. too abstract to be useful when assumptions are involved d. unrelated to reality e. an abstract representation of reality
If a natural disaster were to cause a negative long-run supply shock to the economy, once the economy adjusts, the new equilibrium will be at a:
A. higher price level and lower level of output. B. lower price level and lower level of output. C. higher price level and higher level of output. D. lower price level and higher level of output.