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If skilled and unskilled labor are substitutes, then an increased minimum wage would tend to

A) reduce the demand for both unskilled and skilled workers. B) reduce the quantity demanded of unskilled workers and increase the demand for skilled workers. C) reduce the demand for unskilled workers and increase the quantity demanded of unskilled workers. D) reduce the quantity demanded for both unskilled and skilled workers.

If a firm triples all of its inputs and its output doubles, it is said to be experiencing

a. diminishing marginal returns b. increasing marginal returns c. diseconomies of scale d. economies of scale e. constant average costs

If the unemployment rate is 8 percent, this means: a. 8 percent of the population is unemployed

b. 8 percent of the population over age 16 is unemployed. c. 8 percent of the labor force is unemployed. d. the number of unemployed persons equals 8 percent of the employed persons.

A basic characteristic of a command system is that:

A. government planners play a limited role in deciding what goods will be produced. B. wages paid to labor are higher. C. government owns most economic resources. D. markets function mostly free from government intervention.