Jewelry workers and maintenance workers both get paid $4 an hour. Their supply curves are identical. The demand curve for jewelry workers is more elastic than the demand curve for maintenance workers. An increase in the minimum wage to $5.25 an hour will create
a. greater unemployment among jewelry workers than maintenance workers
b. greater unemployment among maintenance workers than jewelry workers
c. a shortage of jobs among maintenance workers
d. a shortage of jobs among jewelry workers
e. a wage differential between the two sets of workers
A
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The largest single portion of the federal budget is devoted to
A. national defense. B. Medicare and Medicaid. C. Social Security and unemployment compensation. D. education. E. interest payments on the national debt.
In the United States, measured wealth is distributed more unequally than income
Indicate whether the statement is true or false
If the Fed sells government bonds on the open market, which of the following is likely to occur?
A. The money supply will expand. B. The market rate of interest on government bonds will increase. C. The market rate of interest on corporate bonds will decrease. D. The amount of investment spending will increase.
Games with a noncooperative equilibrium:
A. always result in a negative-negative outcome. B. always result in a positive-positive outcome. C. can result in either a positive-positive or negative-negative outcome. D. always result in a positive-negative outcome (zero-sum).