The figure above shows the market for low-skilled labor in Midland city. The government sets a minimum wage at $6 per hour. The minimum wage ________ the employers' surplus by ________ million per year
A) decreases; $60
B) decreases; $120
C) increases; $40
D) increases; $100
A
You might also like to view...
Nominal GDP is calculated by using
A. prices set in a base year. B. average prices in all major cities. C. current prices. D. prices charged by initial producers.
Perfectly competitive markets are not the best at producing the goods that are desired by consumers.
Answer the following statement true (T) or false (F)
Sally lost her job when her company went out of business because of a recession. This is an example of:
a. frictional unemployment. b. structural unemployment. c. cyclical unemployment. d. technological unemployment.
If the exchange rate between the Canadian dollar (C$) and the U.S. dollar ($) changes from 1C$ = $1.30 to 1C$ = $1.05 we can say that:
a. the U.S. dollar has depreciated with respect to all the currencies across the world. b. the Canadian dollar has appreciated with respect to the U.S. dollar. c. the U.S. dollar has appreciated with respect to the Canadian dollar. d. the Canadian dollar has depreciated with respect to all the currencies across the world. e. the Canadian dollar has appreciated with respect to all the currencies across the world.