An effective minimum wage creates a surplus of labor and increases the level of unemployment.
Answer the following statement true (T) or false (F)
True
An effective minimum wage (a minimum wage greater than the equilibrium wage) will increase the quantity supplied of labor and decrease the quantity demanded of labor, causing the market to move away from equilibrium toward excess supply or unemployment.
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The phrase "demand has increased" means that
A) a demand curve has shifted to the right. B) there has been a downward movement along a demand curve. C) a demand curve has shifted to the left. D) there has been an upward movement along a demand curve.
Evidence shows that many people who delay searching for a job for a year or longer after they are laid off
A) find that they have little to no chance to find new employment after being unemployed for so long. B) find it easier to find new employment than if they had searched for a new job soon after they were laid off. C) find that the extra unemployment benefits they receive during their extended period of unemployment more than make up for the difficulty in finding a job once they decide to re-enter the workforce. D) find it more difficult to find new employment than if they had searched for a new job soon after they were laid off.
If decision makers have limited ability to calculate profits from all possible combinations of options, they are said to have
A) dementia. B) bounded rationality. C) Pareto inefficiency. D) a maximin problem.
The figure above shows Lauren's demand curve for Barbie dolls and the market price for Barbie dolls. Using the area of the consumer surplus triangle, Lauren's total consumer surplus from purchasing 3 dolls is
A) $5.50. B) $10.00. C) $22.50. D) $45.00. E) 3 dolls.