The equilibrium wage in a local labor market is $10 per hour. If a minimum wage of $15 per hour is imposed, which of the following will occur?
A) There will be an increase in unemployment.
B) There will be an increase in the quantity of labor demanded by firms.
C) There will be a decrease in the quantity of labor supplied by households.
D) All of the above will occur.
Answer: A
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The experience of disintermediation in the banking industry illustrates that
A) more regulation of financial markets may avoid such problems in the future. B) banks are unable to remain competitive with other financial intermediaries. C) consumers no longer desire the services that banks provide. D) markets invent alternatives to costly regulations.
The percentage of retired older workers has increased dramatically since the introduction of Social Security.
A. True B. False C. Uncertain
A perpetuity is an annuity with a fixed term
a. True b. False
An increase in demand for a product and a reduction in the costs of production would: a. increase the equilibrium quantity and increase the equilibrium price
b. increase the equilibrium quantity and decrease the equilibrium price. c. increase the equilibrium quantity and cause an indeterminate change in the equilibrium price. d. decrease the equilibrium quantity and cause an indeterminate change in the equilibrium price.