A minimum wage set above the market equilibrium wage rate ______
A. increases both employment and the quantity of labor supplied
B. decreases unemployment and raises the wage rate of those employed
C. raises the wage rate of those employed and increases the supply of jobs
D. increases unemployment and decreases employment
D By raising the wage rate above the equilibrium wage rate, a minimum wage creates unemployment and decreases em-ployment.
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An increase in the federal funds rate could be caused by:
A. an open market purchase of government securities. B. an increase in the excess reserves of the banking system. C. an increase in the reserve requirement. D. a cut in the discount rate.
A business enterprise in which employees must belong to the union before they can be hired is called a(n)
A) craft union. B) industrial union. C) closed shop. D) union shop.
If the government increases the income tax rate, consumers have:
A. less to spend and will reduce their consumption. B. more to spend and will reduce their consumption. C. less to spend and will increase their consumption. D. more to spend and will increase their consumption.
Three economic questions must be determined in all societies. What are they? a. How much will be produced? When will it be produced? How much will it cost?
b. What will the price of each good be? Who will produce each good? Who will consume each good? c. What is the opportunity cost of production? Does the society have a comparative advantage in production? Will consumers desire the goods being produced? d. What goods will be produced? How will goods be produced? Who will get the goods produced?