The general equilibrium analysis of a minimum wage applied to only some sectors of the economy suggests that
A) workers in all sectors will face increased wages.
B) some workers in the covered sectors will lose their jobs and remain unemployed.
C) some workers originally employed in the covered sectors will move to the uncovered sectors, driving down wages in the uncovered sectors.
D) all workers will be worse off.
C
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A barter economy is one in which
a. money serves as a medium of exchange. b. only precious metals are accepted as money. c. goods are traded directly for other goods. d. paper money is backed by gold.
Suppose New York City passes a local "big gulp" tax that taxes carbonated beverages larger than 20 ounces if they contain sugar or high fructose corn syrup. If the revenue from the "big gulp" tax is earmarked for diabetes research, the "big gulp" tax may be justified
a. on the basis of the ability-to-pay principle. b. because it is an example of a lump-sum tax and thus is the most efficient tax. c. on the basis of the benefits principle. d. because it is an example of a progressive tax and thus is the most equitable tax.
(1)(2)(3)(4)(5)QdQdPriceQsQs5040$1070806050960708060850609070740501008063040Refer to the above table. If demand is represented by columns (3) and (1) and supply is represented by columns (3) and (4), equilibrium price and quantity will be:
A. $7 and 30 units. B. $9 and 60 units. C. $10 and 60 units. D. $8 and 80 units.
An economic model:
A. is so abstract that it cannot be applied to real-world events. B. applies economic theory to understand real-world events. C. is an action taken to influence the course of economic events. D. can be used only to understand free markets.