If the minimum wage is set too high, in some labor markets we can expect to see:
A. a shortage of labor.
B. an increase in on-the-job training.
C. a surplus of labor.
D. a decline in wage costs.
Answer: C
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In Figure 11.1, an increase in consumer wealth is represented by a change in the consumption function from
A) C1 to C3. B) C3 to C1. C) C2 to C1. D) C1 to C2.
Which of the following is an example of capital?
A) A cell phone bought by an individual for her younger brother B) A tractor used by a farmer for plowing his field C) A used television set purchased by a family D) Alcoholic beverages served at a corporate event
Refer to the figure above. What is the quantity effect of a price reduction from $6 to $4?
A) $600 B) $800 C) $1,000 D) $1,200
Suppose the U.S. dollar depreciates, and there is no change in monetary policy. Which of the following is a correct description of the short-run consequences?
A) output, inflation, and the real interest rate have all increased B) output, inflation, and the real interest rate have returned to their original values C) output and inflation are higher, while the real interest rate has fallen D) output and inflation have returned to their original values, while the real interest rate is increased