If the minimum wage law sets a price floor above the equilibrium wage in the market for unskilled labor, then the
A) minimum wage will create a surplus of unskilled labor.
B) minimum wage will create a shortage of unskilled labor.
C) minimum wage will not impact the unskilled labor market.
D) unskilled labor market will change, but we cannot be certain how.
A
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Joe is shopping for a new computer. A computer can be delivered to Joe's home for $1,200. Alternatively, Joe can pick up the same computer at the warehouse for $1,000. How should Joe buy the computer?
A. Joe should drive to the warehouse because $1,000 is less than $1,200. B. Joe should drive to the warehouse if his cost of driving to the warehouse is less than $200. C. Joe should drive to the warehouse because the $200 he would save by driving to the warehouse is more than 10% of the purchase price. D. Joe should drive to the warehouse if his cost of driving to the warehouse is greater than $200.
If the interest rate is 10%, the present value of $100 to be paid in two years is
A. $80. B. $121. C. $100/1.12. D. $100/1.1.
Deflation is defined as a situation in which
A) the rate of inflation is below 2 percent. B) the average of all prices of goods and services in an economy is falling. C) the value of the dollar is rising relative to other currencies. D) the Gross Domestic Product's growth rate is less for a given quarter than it was for the prior quarter.
Requiring cars in Chicago to reduce pollution by the same amount as cars in Topeka is efficient
a. True b. False Indicate whether the statement is true or false