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
$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.
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
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