A minimum wage ________
A) is a price ceiling in the labor market
B) changes the demand for labor.
C) is an effective way of increasing employment
D) is a price floor in the labor market
D
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Reducing risk through the purchase of assets whose returns do not always move together is
A) diversification. B) intermediation. C) intervention. D) discounting.
When a tax is imposed on an item, it can generally be said that the incidence of the tax is
a. entirely on the buyer. b. entirely on the seller. c. on both the buyer and seller. d. not determined in this manner.
The law of supply states that, other things constant, there is:
A. an inverse relation between price and the quantity supplied. B. an inverse relation between price and supply. C. a direct relation between price and supply. D. a direct relation between price and the quantity supplied.
In the market for land, if the supply of land is perfectly inelastic, an increase in the demand for land will result in a(n)
A) increase in the real interest rate. B) increase in economic rent. C) decrease in the equilibrium price. D) increase in the quantity supplied of land.