Many economists estimate that for every 10% increase in relative minimum wage rates, there is a corresponding decrease in employment of those affected equal to
A. 5-10%.
B. 10-20%.
C. 1-2%.
D. 50-70%.
Answer: C
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The hedonic price method
a. is a direct method of estimating benefit b. relies on the theory that goods are valued for their attributes c. is a physical linkage approach d. is useful but not intuitive
When law-makers impose ceilings on the amount of annual interest charged by lenders, their actions have the effect of
A) excluding certain borrowers from the legally regulated credit market. B) expanding retail sales. C) increasing the number of loans made. D) lowering interest rates for most borrowers. E) redistributing income from creditors to debtors.
Sue consumes only sub sandwiches and Mountain Dew. Subs and Mountain Dew are complements. If the price of a Mountain Dew increases
A) Sue's demand curve for sub sandwiches will shift rightward. B) Sue will move downward along her demand curve for Mountain Dews. C) Sue will move upward along her demand curve for Mountain Dews. D) Both answers A and C are correct.
Do competitive markets use resources efficiently? Explain why or why not
What will be an ideal response?