Because legal wage rate can't eliminate surplus, minimum wage ...
What will be an ideal response?
Creates unemployment
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Use the figure below, and the regular percentage change formula, to answer the following question: 
Assume that price decreases from $10 to $2. The price elasticity of supply is about
A. 0.35 and supply is inelastic. B. 1 and supply is unit-elastic C. 4 and supply is elastic. D. 1.25 and supply is elastic.
Which of the following is NOT one of the functions of money?
A) protection from increases in prices of goods and services B) store of value C) medium of exchange D) unit of accounting
Currently, the price of consuming housing is lowered by the fact that home mortgage interest is tax deductible. Suppose the government proposed to eliminate this implicit subsidy of your housing consumption and at the same time lowers taxes on all other goods.
a. With housing consumption on the horizontal axis and all other consumption on the vertical, illustrate you current optimal consumption bundle. b. After looking over the government's proposal, you decide that you don't care one way or another whether the government implements this proposal. On your graph, indicate your new budget constraint and new optimal bundle under the proposal. c. I also look over the proposal and find that my current consumption bundle also lies on the budget constraint I would face under the proposal. Am I also indifferent between the two proposals? What will be an ideal response?
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, a decrease in unemployment may be represented by the movement from
A. B to A. B. C to D. C. B to D. D. A to C.