When the U.S. minimum wage was first passed in 1938, only 56% of workers were employed in covered firms. The incomplete coverage suggests that
A) the partial equilibrium ignores the movement of workers from uncovered sectors to covered sectors.
B) the decrease in employment is higher in general-equilibrium analysis.
C) the general-equilibrium analysis predicts the wage in uncovered sectors will fall.
D) all the workers will be worse off in both general- and partial-equilibrium analysis.
C
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Other things the same, an increase in the budget deficit
a. shifts the demand for loanable funds right, so the interest rate rises. b. shifts the demand for loanable funds left, so the interest rate falls. c. shifts the supply of loanable funds right, so the interest rate falls. d. shifts the supply of loanable funds left, so the interest rate rises.
If production of a good creates beneficial externalities, a perfectly competitive market will produce
A. less output than would maximize profit. B. more output than would maximize profit. C. less output than is socially efficient. D. more output than is socially efficient.
According to the above table, the marginal factor cost of the eighth worker is
A. $168.00. B. $27.00. C. $48.00. D. $216.00.
An input's marginal revenue product is given by
a. the input's marginal expense times marginal revenue. b. the input's marginal expense times the input's marginal physical productivity. c. marginal revenue times the number of units employed. d. the input's marginal physical productivity times marginal revenue of the firm's output.