According to some supporters of the minimum wage, it has very small or even nonexistent negative employment effects because:
A. the demand for minimum wage labor is highly elastic.
B. it reduces turnover among minimum wage workers, prompts employers to use them more
efficiently, and thus raises their average productivity.
C. it encourages teenagers to stay in school.
D. employers substitute lower fringe benefits for higher pay, keeping their compensation costs
the same.
Answer: B
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Productivity per worker has increased in the past primarily through
a. hiring more teenagers. b. hiring more women. c. medical benefits. d. technological development.
________ is necessary to "balance" the BOP statement
A) Reserve inflow B) Statistical discrepancy C) Debit transaction D) Credit transaction
Using the equation of exchange, if inflation is 1%, the velocity of money grows by 1.0% and the growth rate of money is 3.0%; what is real growth?
A. 4.0% B. 1% C. -1.0% D. +3.0%
A warranty on a used car is a credible signal of quality because:
A. many used cars come with warranties. B. it indicates the car is of average quality. C. it would cost the seller too much to honor a warranty on a low-quality car. D. sellers who offer warranties are more honest than most people.