A minimum wage that is set below a market's equilibrium wage will
a. result in an excess demand for labor, that is, unemployment.
b. result in an excess demand for labor, that is, a shortage of workers.
c. result in an excess supply of labor, that is, unemployment.
d. have no impact on employment.
d
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Pumpkin growing is a perfectly competitive industry. Suppose that pumpkin growers are all incurring an economic loss. What happens as time passes? What is the long-run equilibrium outcome?
What will be an ideal response?
If Andre Preneur puts together a company that yields a profit of $40,000 per year and this profit stream is expected to continue indefinitely, what price can he sell the company for if the discount rate equals 8 percent?
a. $40,000 b. $60,000 c. $100,000 d. $250,000 e. $500,000
The production possibilities curve for the nation of Economania shifts to the right. This could have been caused by:
a. a decrease in Economania's capital stock. b. a decrease in the Economania's labor supply. c. high unemployment in Economania the previous time period. d. Economania producing all consumer goods in the previous period. e. technological innovation in the production of Economania goods.
Government expenditures are a subcategory of government outlays
a. True b. False