If employers were required by law to increase the wages paid to secretaries by 40 percent, which consequence could we most confidently predict?
A) More secretaries would be employed.
B) Secretaries would begin to earn more than they are worth to their employers.
C) The marginal value of secretaries would increase by about 40 percent.
D) The total amount of wages paid to secretaries would decrease.
E) The total amount of wages paid to secretaries would increase.
C
You might also like to view...
Refer to Figure 10.1. Suppose that the government decides to limit monopoly power with price regulation. If the government sets the price at the competitive level, it will set the price at ________
A) P1 B) P2 C) P3 D) P4 E) none of the above
A consequence of adverse selection is:
A. buyers gain surplus they would have lost with complete information. B. sellers gain surplus they would have lost with complete information. C. transactions do not take place that would have been possible if the parties had the same information. D. buyers make irrational decisions because they lack information.
The official rate of unemployment is based on a(n)
a. door-to-door survey. b. telephone survey. c. employer survey. d. payroll survey.
A firm that buys inputs from outside sources is said to ________
a. vertically integrate b. outsource c. create economies of scope d. create hidden characteristics