Suppose the government raises the minimum wage in the economy. All else constant, how will this affect the quantity of labor demanded and the quantity of labor supplied?
What will be an ideal response?
The increase in the real wage will increase the marginal cost of labor and firms will therefore hire fewer workers (a decrease in the quantity of workers demanded). Since more people would be willing to work at a higher real wage, the quantity of labor supplied should increase.
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The price of a firm's product is $6 and the firm faces a constant marginal cost of $4 that is equal to its (constant) average total cost. If the firm does not sell a unit of its product on the day it was produced, it is sold in a secondary market for a price of $3. If the firm does not sell a unit of its product on the day it was produced, there is a ________ of ________ per unit not sold.
A) loss; $2 B) loss; $1 C) profit; $1 D) profit; $2
Gross national product in terms of the income method is equal to national income plus indirect business taxes minus the capital consumption allowance
a. True b. False Indicate whether the statement is true or false
If a hurricane were to wipe out the majority of the eastern seaboard in the United States:
A. neither the short-run nor long-run aggregate supply curves would be affected. B. only the long-run aggregate supply curve would shift left. C. only the short-run aggregate supply curve would shift left. D. the long-run and short-run aggregate supply curves would both shift left.
Describe the international costs associated with farm price supports
What will be an ideal response?