Imposing a minimum wage above the equilibrium wage:
A. makes some workers worse off.
B. increases the size of the total wage bill.
C. makes all workers better off.
D. lowers labor costs.
Answer: A
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National income accounting helps economists and policymakers ________.
A. determine which firms are likely to succeed or fail B. measure what is occurring in each specific labor market C. follow the long-run course of the economy to assess whether it has grown or stagnated D. It helps accomplish all of these
Goods are scarce when:
a. their price is too low. b. their price is too high. c. the amount people want is more than the amount available at a zero price. d. people want less of something as compared to what is available. e. their prices are controlled.
For which of the following is the law of one price least likely to hold?
A) Haircuts B) Gold C) US Treasury Bonds D) Petroleum
Sheila and Jim live in an island where they are the only two workers. Sheila can either catch 10 fish or gather 40 pounds of berries each day, and Jim can either catch 8 fish or gather 24 pounds of berries each day. Both of them work 200 days per year. At current world prices 1 fish trades for 3.5 pounds of berries. How much of each good can be produced if each worker fully specializes according to comparative advantage?
A. 1,600 fish and 8,000 pounds of berries B. 1,600 fish and 4,800 pounds of berries C. 3,600 fish and 12,800 pounds of berries D. 2,000 fish and 8,000 pounds of berries