The figure above shows the labor market in a small town. If the government imposes a wage of $10 that firms must at least pay,
A) the government has imposed a minimum wage and market forces are not allowed to work.
B) inflation will occur as wages rise.
C) job search will decrease.
D) the government has imposed an efficiency wage.
E) job rationing will decrease.
A
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The long-run average cost curve shows the lowest possible average cost for each output level, given that all inputs are variable.
Answer the following statement true (T) or false (F)
The money market rate observed most closely by the Open Market Account Manager is the
A) Treasury bill rate. B) commercial paper rate. C) discount rate. D) federal funds rate.
For a perfectly competitive firm, marginal revenue is identical to marginal cost at every quantity
Indicate whether the statement is true or false
Which of the following is not part of the pollution problem?
A. The absence of markets for goods like clean air and clean water B. The lack of well-defined property rights to clean air and clean water C. The unreliability of voluntary programs to cut pollution D. The willingness of citizens to take steps to reduce detrimental externalities