If policy makers believe that the equilibrium wage rate is too low, policy makers can raise wages by legislating a minimum wage, that is, a wage
A) ceiling above the equilibrium wage.
B) ceiling below the equilibrium wage.
C) floor above the equilibrium wage.
D) floor below the equilibrium wage.
C
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When drawn against the current real wage, the labor demand curve shift to the right if
A) the interest rate increases. B) current taxes increase. C) total factor productivity increases. D) future capital increases.
In one hour, George can fix 4 flat tires or type 200 words. His opportunity cost of fixing a flat tire is
a. 200 words b. 4 flat tires c. 1 word d. 50 words e. 800 words
If demand is elastic, an increase in price will decrease total revenue
a. True b. False Indicate whether the statement is true or false
If natural resources had become scarcer, then we would expect their
a. prices to have risen more than inflation as they have. b. prices to have risen more than inflation, but they have not. c. known quantities to have fallen as they have. d. known quantities to have fallen but they have not.