A minimum wage that is set above a market's equilibrium wage will result in an excess
a. demand for labor, that is, unemployment.
b. demand for labor, that is, a shortage of workers.
c. supply of labor, that is, unemployment.
d. supply of labor, that is, a shortage of workers.
c
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If the equilibrium wage for fast-food restaurants is $8 and the government enforces a minimum wage of $15
A. workers will get paid less. B. workers will be able to find more jobs. C. overall, society will be better off. D. fast-food restaurants will hire fewer workers.
An institution that issues a currency at a fixed rate in exchange for an equivalent amount of another designated currency and invests the funds in bonds and liquid assets that provide 100 percent backing for the currency units issued is called
a. a central bank. b. the International Monetary Fund. c. the World Trade Organization. d. a currency board.
A form of government spending that is not made in exchange for a currently produced good or service is called
a. a transfer payment. b. consumption. c. investment. d. None of the above is correct.
Value added refers to:
A. any increase in GDP that has been adjusted for adverse environmental effects. B. the excess of gross investment over net investment. C. the difference between the value of a firm's output and the value of the inputs it has purchased from others. D. the portion of any increase in GDP that is caused by inflation as opposed to an increase in real output.