If the minimum wage is set at a level below the equilibrium wage it:
A. would be a nonbinding minimum wage.
B. will probably affect government jobs more than any other job market.
C. would interfere with the market reaching equilibrium.
D. will have a large effect.
Answer: A
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The utility from a specific product is
A. determined by a consumer's income. B. constant as one consumes more units of it. C. determined by the price of the product. D. a measure of one's preference or taste for it.
What does the quantity theory of money imply? If the growth rate of money supply and growth rate of real GDP in an economy are 8% and 6%, respectively, then what is the inflation rate in the economy?
What will be an ideal response?
How are the domestic sellers and buyers of a good affected if a country starts exporting the good?
What will be an ideal response?
An economy has two workers, Paula and Ricardo. Every day they work, Paula can produce 4 computers or 16 shirts, and Ricardo can produce 6 computers or 12 shirts. What is the opportunity cost for Ricardo to produce one shirt?
A. 2 computers B. ¼ computer C. 4 computers D. ½ computer