How will a government-imposed minimum wage affect the equilibrium level of employment in a competitive labor market and in a monopsony labor market?
What will be an ideal response?
In a competitive labor market, a minimum wage should reduce the equilibrium level of employment. In the case of a monopsony, imposing a minimum wage removes market power from the single firm and encourages the firm to hire more workers than it would otherwise.
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Some costs cannot be varied no matter how long the period in question. These are called
a. overheads. b. total costs. c. fixed costs. d. variable costs.
Both the Bush and Obama administrations used tax cuts as a remedy to the housing “bubble.”
Answer the following statement true (T) or false (F)
A noncooperative outcome after the center nation has undertaken a stabilization policy in response to an asymmetric shock would be that the:
A) center country abandons its own stabilization policy in favor of the home country. B) home country absorbs the losses resulting from the stabilization policy in the center country. C) center country makes concessions, recognizing the impact on the home country and thereby sharing the pain. D) peg is temporarily abandoned.
Which of the following is least likely to be money?
A. cash or currency B. capital C. a checking account