Refer to the information provided in Figure 6.2 below to answer the question(s) that follow.
Figure 6.2Refer to Figure 6.2. Assume Mr. Lingle is on budget constraint AC. If the price of a beer is $5, Mr. Lingle's monthly income is
A. $40.
B. $80.
C. $100.
D. $200.
Answer: D
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Government production accounts for about half of all GDP in the United States.
Answer the following statement true (T) or false (F)
In the labor market, if the government imposes a minimum wage that is below the equilibrium wage, then
A) workers who wish to work at the minimum wage will have a difficult time finding jobs. B) firms will hire fewer workers than without the minimum wage law. C) some workers may lose their jobs as a result. D) nothing will happen to the wage rate or employment.
To be officially counted as unemployed, a person must be
A) at least 16 years old. B) at least 18 years old. C) at least 21 years old. D) any age, so long as you are looking for work.
Other things being equal, if you took money out of your savings deposit account and put it in a demand deposit account:
a. M1 would increase and M2 would increase. b. M1 would increase but M2 would not change. c. M1 would decrease and M2 would decrease. d. M1 would fall but M2 would not change.