As a result of establishing a legal minimum wage above the market clearing wage
A) there will be a shortage of workers.
B) firms will hire fewer workers.
C) firms will hire more workers.
D) fewer workers will want to work.
B
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The demand for tobacco is price inelastic. Suppose there is a drought that destroys a large portion of the tobacco crop
What will happen in the market for tobacco? Will the equilibrium price and quantity change? If so, how? What will happen to the total revenue earned by tobacco farmers?
Menu costs refer to:
A. the money, time, and opportunity used to change prices to keep pace with inflation. B. the time, money, and effort one has to spend managing cash in the face of inflation. C. being penalized via taxes for making more money in dollars, even though real purchasing power hasn't changed. D. labor costs associated with inflation.
Which of the following accounted for the highest percentage of federal government spending in 2013?
a. net interest on the national debt b. income security c. national defense d. education and health
When households and businesses interact in product markets goods and services are
a. not exchanged b. flowing toward businesses c. flowing toward households d. not used at all e. flowing to both businesses and households