Which of the following statements is true?
A) Both efficiency wages and minimum wages increase unemployment.
B) Efficiency wages increase unemployment while minimum wages help reduce unemployment.
C) Both efficiency wages and minimum wages help reduce unemployment.
D) Efficiency wages help reduce unemployment while minimum wages increase unemployment.
A
You might also like to view...
To maximize social welfare in the presence of a negative externality, marginal ____ must equal marginal ____
a. social cost; private cost b. private cost; social cost c. social cost; social benefit d. private cost; social benefit
Using marginal analysis, an economist would judge the proper distribution of government spending by comparing
A. the amount spent with the amount spent in the previous year. B. whether the last dollar spent on one program would have been better spent on another. C. whether the last dollar spent would have been better left in private hands. D. whether the last dollar spent garnered any value to society.
The following linear demand specification is estimated for Conlan Enterprises, a price-setting firm:Q = a + bP +cM +dPRwhere Q is the quantity demanded of the product Conlan Enterprises sells, P is the price of that product, M is income, and PR is the price of a related product. The results of the estimation are presented below: 
For the next 2 questions suppose income remains at $10,000 but the price of the related good increases to $60 and Conlan decides to raise the price of its product to $50. At the prices and income given above, Conlan can expect to sell ________units.
A. 724 B. 872 C. 600 D. 864 E. 342
Figure 4.4 illustrates the supply of tacos. A technological advancement which makes tacos cheaper to produce would most likely cause a movement from:
A. point a to point c. B. point c to point a. C. S2 to S0. D. S0 to S2.