Refer to Figure 20-1. Based on the graph of the labor market above, if a minimum wage of $8 per hour is imposed, which of the following will result?
A) The quantity of labor demanded by firms will rise.
B) The quantity of labor demanded by firms will fall.
C) The unemployment rate will fall.
D) Both A and C will occur.
B
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Refer to Figure 11.4. Which diagram illustrates the effect of an increase in government spending?
A) A B) B C) C D) D
What is unemployment compensation?
What will be an ideal response?
A business incurs the following costs per unit: Labor $5/unit; Materials $3/unit and rent $5000/month. If the firm produces 1000 units a month, the total fixed costs equals
a. $5,000 b. $8,000 c. $13,000 d. $3,000
Income elasticity of demand reflects
A. the responsiveness of demand to changes in income. B. the responsiveness of income of producers to a change in quantity sold of the good. C. the responsiveness of the quantity demanded to changes in income, adjusting its relative price so real income does not change. D. the change in total quantity demanded divided by the total change in income.