Suppose that the state of California imposes a minimum wage of $7 per hour. In the entry-level labor market in California fast-food restaurants, the quantity of labor demanded at $7 per hour is 800 thousand, and the quantity of labor supplied is 1.2 million. Which of the following is true?
a. There is a shortage of 800 thousand workers in the labor market.
b. There is a shortage of 400 thousand workers in the labor market.
c. There is a surplus of 400 thousand workers in the labor market.
d. There is a surplus of 1.2 million workers in the labor market.
c
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An increase in disposable income ________
A) has no effect on the supply of loanable funds curve B) shifts the supply of loanable funds curve rightward C) shifts the supply of loanable funds curve leftward D) results in movement up the supply of loanable funds curve
The budget line can shift or rotate
A) only when income changes. B) only when prices change. C) when either income or prices change. D) None of the above, because changes in income and prices do not shift or rotate the budget line.
International trade occurs because the opportunity cost of producing specific goods differs across
a. firms b. individuals c. regions of the U.S. d. countries e. households
The following table provides information about production at the XYZ-TV Company. Number of WorkersTVs ProducedMarginal ProductValue of Marginal Product00------13535$35,00026833$33,00039931$31,000412829$29,000515527$27,000 How many workers will XYZ-TV Company hire if the going wage for TV production workers is $32,000?
A. 3 B. 2 C. 0 D. 1