The heart of the argument against an increase in the minimum wage is one based on
A. the elasticity argument.
B. consumer and producer surplus analysis.
C. the macroeconomic argument.
D. the work effort argument.
Answer: B
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Economists and accountants usually disagree on the inclusion of implicit costs into the cost analysis of a firm
a. True b. False Indicate whether the statement is true or false
Refer to the accompanying figure. Suppose the solid line represents the current supply of Star Wars action figures. If retailers learn that a new Star Wars movie will be released in several months, this news is likely to cause:
A. neither a change in supply nor a change in quantity supplied since only future demand will change. B. a decrease in the quantity supplied, but no change in current supply. C. current supply to shift to S(B) in anticipation of higher future prices. D. current supply to shift to S(A) in anticipation of higher future prices.
If there is an increase in the demand for U.S. automobiles, the
A) demand for dollars will fall. B) demand for dollars will rise. C) supply of dollars will fall. D) supply of dollars will rise.
The quantity equation states that
A) the money supply (M) divided by the velocity of money (V) equals the price level (P) divided by real output (Y), i.e., M/V = P/Y. B) M × V = P × Y. C) M + V = P + Y. D) M - V = P - Y.