Evaluate the statement: All minimum wage workers will be better off if the minimum wage rises.
What will be an ideal response?
This is probably incorrect. The minimum wage workers who keep their jobs will be better off. But if the labor demand curve is downward sloping (and it most likely is for minimum wage workers), some workers will lose their jobs. Everyone (including the workers) will pay more for the goods and services produced by minimum wage workers.
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When macroeconomics refers to "full employment," what do they mean?
a. Full employment occurs when the unemployment rate equals zero. b. Full employment occurs when there is only frictional unemployment, and all other types of unemployment have been eliminated. c. Full employment occurs when there is only structural unemployment, and all other types of unemployment have been eliminated. d. Full employment occurs when there is only frictional unemployment, structural, and cyclical unemployment has been eliminated.
Which of the following statements is false?
A) Private equity firms often need to borrow the money needed to buy a public corporation. B) Once a private equity firm owns a formerly publicly held corporation, they tend to cut costs and enhance efficiency. C) Critics of private equity firms say that companies that have too much cash and too little debt become targets for private equity firms to buy. D) A private equity firm is a group of investors that takes a privately held corporation and uses an investment banker to turn it into a publicly held corporation.
If an economy moves from a point inside the production possibilities curve to a point on the curve:
A. There is increased use of the productive capacity. B. The level of unemployment has increased. C. The available resources must have increased. D. The level of technology must have increased.
The value of money varies
A. inversely with the average price level. B. directly with the volume of employment. C. directly with the average price level. D. directly with the interest rate.