If the elasticity of labor demand is greater than one, then imposing a minimum wage above the equilibrium wage will cause:
A. the firms' total wage bill to rise.
B. the firms' total wage bill to fall.
C. employment to rise.
D. no adverse employment effects.
Answer: B
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It is easy to sign contracts for gym membership, but if one rarely goes to the gym a gap exists between _______ and behavior
a. Resources b. Values (hope) c. Attitudes d. Ethics
If a central bank increases the money supply in response to an adverse supply shock, then which of the following quantities moves closer to its pre-shock value as a result?
a. both the price level and output b. the price level but not output c. output but not the price level d. neither output nor the price level
$500 and there are two companies he could invest X dollars in: Dog Gone Salon, which has a payoff of 2X with 50% probability and $0 with 50% probability and Pretty Kitty Grooming, which has a payoff of 4X with 25% probability and $0 with 75% probability. Dean's expected payoff from investing $250 in both Dog Gone Salon and Pretty Kitty Grooming is:
A. $62.50. B. $500. C. $750. D. $250.
Refer to the given figure where the nominal interest rate equals 6 percent and the money supply equals 600.
If the Federal Reserve wants to raise the interest rate to 8 percent, it must ________ the money supply to ________.
A. decrease; 400 B. increase; 800 C. decrease; 800 D. increase; 400