If an increase in the government-imposed minimum wage pushes the price (wage) of unskilled labor above market equilibrium, which of the following will most likely occur in the unskilled labor market?
a. an increase in quantity of unskilled labor demanded
b. a decrease in the quantity of unskilled labor supplied
c. a shortage of unskilled labor
d. a surplus of unskilled labor (unemployment)
D
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What is the impact on interest rates when the Federal Reserve decreases the money supply by selling bonds to the public?
What will be an ideal response?
The series of induced changes in consumption spending that result from an initial change in autonomous expenditure is called the
A) induced effect. B) autonomous effect. C) multiplier effect. D) consumption effect
While waiting in line to buy two tacos at 80 cents each and a medium drink for 90 cents, Jordan notices that the restaurant has a value meal containing three tacos and a medium drink all for $3 . For Jordan, the marginal cost of the third taco would be:
a. zero. b. 50 cents. c. 80 cents. d. $1.
Which of the following is defined as the percentage by which the entire set of a nation's trade barriers raises an industry's value added per unit of output?
A. Effective rate of protection B. Revenue effect C. One-dollar, one-vote metric D. Terms-of-trade effect