A binding minimum wage may not help all workers, but it does not hurt any workers
a. True
b. False
Indicate whether the statement is true or false
False
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Suppose the current price of a pound of steak is $12 per pound and the equilibrium price is $9 per pound. In this case, there is a
A) surplus, so the price falls and quantity supplied increases. B) surplus, so the price rises and quantity demanded increases. C) shortage, so the price rises and quantity demanded decreases. D) shortage, so the price falls and quantity demanded increases. E) surplus, so the price falls and quantity demanded increases.
An important condition required for economic growth is
A) economic freedom. B) a libertarian government. C) a totalitarian government. D) a democratic government. E) the incentive to limit international trade so that all economic growth remains within the country.
Refer to Figure 7-5. If consumers paid the full price of medical services, the equilibrium quantity would be
A) 400. B) 800. C) 1,200. D) > 1,200.
Minimum-wage laws
a. create frictional unemployment, while firms paying wages above equilibrium to reduce worker turnover creates structural unemployment. b. create structural unemployment, while firms paying wages above equilibrium to reduce worker turnover creates frictional unemployment. c. and firms paying wages above equilibrium to reduce worker turnover both create structural unemployment. d. and firms paying wages above equilibrium to reduce worker turnover both create frictional unemployment.