Specialization in trade will be economically efficient if it is based upon
A) national security needs.
B) absolute advantage.
C) comparative advantage.
D) government regulations.
C
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Given that the demand for unskilled labor curve is downward-sloping, an unintended effect of raising the minimum wage is that some people who worked at the lower wage will lose their jobs at the higher wage.
Answer the following statement true (T) or false (F)
Suppose that the consumption function crosses the 45-degree line at a disposable income level of $800 . Assume further that saving equals $200 when disposable income is $1,300 . This implies that the MPC must equal 0.6
a. True b. False Indicate whether the statement is true or false
The size of the labor force in a country is equal to the:
A) number of unemployed workers in the country. B) number of employed workers plus the number of unemployed workers in the country. C) number of employed workers in the country. D) number of employed workers minus the number of unemployed workers in the country.
The decrease in the incentive to work created by welfare payments programs
A) only affects low income taxpayers. B) only affects taxpayers but not welfare recipients. C) only affects high income executives. D) affects both taxpayers and welfare recipients.