If the minimum wage is set at a level above the equilibrium wage:
A. it will have no effect.
B. it will be a nonbinding minimum wage.
C. it could cause unemployment.
D. All of these are true.
C. it could cause unemployment.
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Consumers who are more sensitive to changes in price suffer a greater loss of consumer surplus from any given price increase
Indicate whether the statement is true or false
A policy to do nothing and allow the economy to self-correct or adjust without interference from the federal government is also called a(n) _______________ policy:
a. nonintervention b. active c. stabilization d. fixed rule
Which of the following economic perspectives for decision making is a statement that describes the world as it is?
a. Positive statement b. Normative statement c. Cognitive statement d. Reflective statement
If the Federal Reserve wanted to stimulate the economy, it would most likely:
A. reduce the discount rate. B. decrease reserves in the banking system. C. increase reserves in the banking system. D. Both A and C are true.