Minimum wage legislation
a. sets a price ceiling above the market-clearing price
b. has no impact if the minimum wage is above the market-clearing price
c. affects every worker in every trade in precisely the same way
d. creates some degree of unemployment when the minimum wage is above the equilibrium wage
e. is opposed by organized labor
D
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The percentage of total national income spent on health care in the United States has
A) declined rapidly since 1965. B) remained below the level of inflation. C) risen steadily since 1965. D) remained constant over the last few years.
If a Pigovian tax is too large, the resulting:
A. quantity will be too high. B. outcome will not maximize surplus. C. outcome will still be efficient. D. All of these statements are true.
At a quantity above the equilibrium quantity, which of the following does not exist? a. deadweight loss b. underproduction
c. overproduction d. inefficient production
Explain how an economist is like an engineer. Give an example.
What will be an ideal response?