What is the effect of having a minimum wage that is nonbinding?
a. It allows wage equilibrium, but creates a quantity shortage.
b. It increased the labor shortage of workers who earn more than minimum wage.
c. It increases the labor surplus of workers who earn more than minimum wage.
d. It allows wage equilibrium and quantity equilibrium.
d. It allows wage equilibrium and quantity equilibrium.
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An exchange rate depreciation appears to consumers as a markdown on foreign products
a. True b. False Indicate whether the statement is true or false
If the number of employers for a particular type of labor increases, which of the following shifts should occur in the labor market for the particular type of labor?
A. Demand for labor should shift to the left. B. Demand for labor should shift to the right. C. Supply of labor should shift to the right. D. Supply of labor should shift to the left.
If the value of the cross elasticity of demand is negative, the two goods are
A) complementary goods. B) substitute goods. C) normal goods. D) inferior goods.
Explain how the current U.S. tax system levies taxes on capital gains and earned interest. What does this mean for the costs of inflation?
What will be an ideal response?