Critics of minimum wage laws argue that such laws will end up hurting people with lower skills because
A. property income is a better way to measure hourly rates.
B. lower skilled workers will be forced into taking jobs that they would not freely choose.
C. these laws interfere with the smooth functioning of the labor market and create unemployment.
D. compensating differentials will not be applied.
Answer: C
You might also like to view...
Consider an industry with two firms producing similar products. Each firm's total cost (in dollars) is given below. Mega Corp: TC = 5,000 + 100Q Big Inc: TC = 4,000 + 200Q For both firms, average total cost:
A. declines as quantity increases. B. declines as quantity increases for Mega Corp and increases as quantity increases for Big Inc. C. increases as quantity increases. D. is constant for all quantities.
We all know that the United States has the highest per capita health care spending in the world. Which country has the second highest?
a. Japan. b. Germany. c. Switzerland. d. Great Britain. e. France.
Sellers in competitive price-searcher markets
a. face competition both from existing firms and potential new entrants. b. face competition from existing firms but not from potential new entrants. c. face competition only from potential new entrants and only in the long run. d. can compete only by product quality since product prices are set by market forces.
In an economy with flexible exchange rates, which measure(s) are successful at reducing unemployment in the context of the Three-Sector-Model?
a. Increase government spending. b. Raise the discount rate for banks. c. Raise tax rates. d. Increase reserve requirements. e. All of the above