In Figure 30.2, a minimum wage of $20 will result in a
A. Shortage of 160 workers.
B. Shortage of 180 hours.
C. Surplus of 20 workers.
D. Surplus of 32 workers.
Answer: D
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The federal government, in order to fund expanded health care, imposes a lump-sum tax on all business property. Profit-maximizing firms that stay in business will respond by
A. raising prices to pay the tax. B. cutting output to reduce costs. C. lowering prices to stimulate demand. D. doing nothing.
The balance of payments is:
A. the accounting of trade in financial assets. B. the accounting of trade in goods and capital. C. positive when a country has a trade deficit. D. negative when a country has a trade surplus.
What is true only at the output level where price equals average total cost?
a. Marginal cost equals marginal revenue. b. Profit is maximized. c. Losses are minimized. d. Profit is zero. e. Cost is minimized.
The bulk of the exports from developing countries comprises of:
a. manufactured goods. b. finished goods. c. raw materials. d. services.