The figure above shows the labor market in a region. In which of the following cases would the amount of unemployment be the largest?
A) when the market is at its equilibrium, with no minimum wage
B) when a minimum wage of $4 an hour is imposed
C) when a minimum wage of $6 an hour is imposed
D) when a minimum wage of $8 an hour is imposed
E) None of the above because the market will adjust so that there is no unemployment.
D
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The extra benefit that results from carrying out one additional unit of an activity is the ________ of the activity.
A. average benefit B. marginal benefit C. economic benefit D. total benefit
When government intervenes in the production process because external benefits exist, it typically attempts
A) to impose a tax on each unit produced. B) to shift the industry's demand curve to the left. C) to shift the industry's demand curve to the right. D) to shift the industry's supply curve to the left.
The fact that wage differentials continue to exist across different groups of workers leads economists to believe that
a. discrimination by customers is the most common type of economic discrimination. b. differences in human capital and job characteristics must be important in explaining the differences in wages. c. firms apparently are not profit maximizers. d. the market has failed to properly allocate wages to different workers.
Refer to the graph shown. What will reduce the trade deficit?
A. The SAS curve shifts down. B. The WAS curve shifts up. C. The AD curve shifts to the left. D. All the answers are correct.