Other things constant, the quantity of money demanded varies:
a. directly with the market interest rate
b. inversely with the market interest rate.
c. inversely with the price level.
d. directly with the price level.
e. inversely with the unemployment rate.
b
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Most economists will argue that the minimum wage causes unemployment. Even politicians will recognize this when pressed
However, typically liberals will tout the benefits of the minimum wage while conservatives will decry the disruption that it causes in the labor market. Which economic objective seems to be more important for liberals and which is more important to conservatives if this general observation is correct? Which side is right?
Assuming peaches are a normal good and consumer incomes rise, producer surplus in the peach market:
A. increases. B. decreases. C. remains unchanged. D. equals the deadweight loss increase.
Market failure may lead to
A. Production possibilities. B. The absence of externalities. C. An equitable distribution of goods and services. D. Public goods being underproduced.
Efficiency is another word for equity.
Answer the following statement true (T) or false (F)