A minimum wage set above the equilibrium wage rate creates
A) efficiency because it increases most workers' wages.
B) efficiency because few workers lose their jobs.
C) efficiency because workers can earn a living wage.
D) inefficiency and a deadweight loss.
E) inefficiency because it creates excessive employment.
D
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In the Keynesian model with a variable money wage and variable price level, an increase in the money supply lead to a rise in all of the following except
a. price level. b. output. c. real wage. d. level of employment. e. all of these rise
When the Fed increases or decreases the money supply, these actions are called
a. discounting b. money printing c. moral suasion d. open market operations e. interest payments
Which of the following statements about public education is TRUE?
A) Over the last 40 years, there has been an increase in spending for public education, while there has not been a significant increase in performance. B) Over the last 40 years, there has been a decrease in public spending for public education, while there has not been a significant increase in performance. C) Most of the increases in public spending on public education have gone into programs that have increased student learning. D) Over the last 40 years there has been no decline in any of the measures of student performance in public education.
Which of the following is a positive question?
A. Wouldn't it be better to try to increase people's wages through job-training programs rather than by requiring employers to pay minimum wages? B. Will the level of teenage unemployment increase if the minimum wage is increased? C. Should the minimum wage be set at one-half the average manufacturing wage to guarantee individuals a decent standard of living? D. Wouldn't it be more equitable if the minimum wage increased automatically with the cost of living?