The figure above shows the labor market in a region. For a minimum wage to change the wage rate and amount of employment, it must be
A) left to the forces of supply and demand.
B) set above $6 an hour.
C) set equal to $6 an hour.
D) set below $6 an hour.
E) set at $12 per hour.
B
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What have we assumed when we conclude that a real depreciation of the currency improves the current account?
A) The volume effect outweighs the value effect. B) The value effect outweighs the volume effect. C) All else equal and the volume effect outweighs the value effect. D) All else equal and the value effect outweighs the volume effect. E) All else equal and the volume effect equals the value effect.
An example of an external force affecting the business cycle is
a. an inventory accumulation. b. the multiplier effect. c. a change in business attitudes toward investment. d. a change in the discount rate by the Fed.
To achieve a $500 billion increase in AD, if the MPC is 0.8, what increase in government purchases would be called for?
a. $625 billion b. $500 billion c. $400 billion d. $100 billion
If someone has a high willingness to take on situations with risk, he is considered:
A. low-risk. B. high-compensation. C. risk-seeking. D. risk-averse.