Minimum wage laws cause unemployment because the legal minimum wage is set
A) below the market wage, causing labor demand to be greater than labor supply.
B) below the market wage, causing labor demand to be less than labor supply.
C) above the market wage, causing labor demand to be greater than labor supply.
D) above the market wage, causing labor demand to be less than labor supply.
Answer: D
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Describe the role of uncertainty at the beginning of and in the unfolding of a financial crisis
What will be an ideal response?
Given the production function Y = A and fixed values for the saving rate and depreciation, if productivity is growing at an average rate of three percent, and the labor input grows at two percent, there is a unique growth rate of capital that is
sustainable. That is, if the growth rate of capital is either higher or lower than this steady-state value, then it must eventually change, even if nothing else in the economy changes. Calculate this steady-state growth rate of capital, and explain why it alone is a sustainable rate. [Hint: Use the fact that the growth rates of output and capital per worker are 43% higher than the growth rate of productivity.]
Which of the following statements correctly describe the elasticities of demand for gasoline and automobiles?
a. The income elasticity of demand for gasoline and automobiles is negative. b. The price elasticity of demand for gasoline is elastic and the cross-price elasticity between gasoline and SUVs is positive. c. The price elasticity of demand for gasoline is inelastic and the cross-price elasticity between gasoline and SUVs is negative. d. The price elasticity of demand for gasoline is inelastic and the income elasticity between gasoline and SUVs is positive. e. The price elasticity of demand for gasoline is elastic and the income elasticity between gasoline and SUVs is negative.
Over the years, many food and beverage producers began merging with other companies. Nabisco merged with a tobacco firm; Campbell's Soup purchased mushroom farms; and, Anheuser-Busch purchased, among others, malt, yeast, and canning companies. Pepsi purchased Kentucky Fried Chicken, Taco Bell, and Pizza Hut. Which of these merging firms engaged in either vertical or conglomerate mergers?
a. none b. all c. only Campbell's Soup d. only Anheuser-Busch e. only Pepsi