Some economists argue that the minimum wage:
A. leads some employers to pay workers cash and then report these payments to the government.
B. drives some labor to occur "under the table."
C. causes some employers to hire undocumented migrants driving up wages overall.
D. All of these are true.
Answer: B
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In an economy, if three-fourths of national income goes to labor, and one-fourth to capital stock, the Cobb-Douglas production function for this economy will be:
A) Y = A × 1/4 × K × 3/4 × L B) Y = A × K4 × L3 C) Y = A × K1/4 × L3/4 D) Y = A × K1/3 × L2/3
Productivity gains in the United States since 1990 have been ________ productivity gains in other leading industrial nations
A) the same as B) higher than C) lower than D) more variable than
Refer to Figure 28-7. Consider the Phillips curves depicted in the graph above. The Fed announces its intention to decrease inflation from 10 percent to 5 percent per year, and it succeeds
If the assumptions of the rational expectations school hold true, and the Fed's announcement is credible, the rate of unemployment will be ________ in the short run. A) less than 5.5 percent B) 5.5 percent C) between 5.5 and 7.5 percent D) 7.5 percent
Typically, consumers respond to an increase in (expected) future income by ________
A) shifting the budget constraint to the left B) increasing both current and future consumption C) saving more to increase future wealth D) waiting until the income is received before changing their consumption behavior