The minimum wage can be thought of as a price floor. The great majority of labor economists believe that a minimum wage __________ unemployment among young and unskilled workers
a. increases
b. decreases
c. eliminates
d. has no effect on
e. There is not enough information to answer the question.
A
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A decrease in population shifts the production possibilities frontier outwards over time
Indicate whether the statement is true or false
The "crowding out" effect refers to the:
A. increase in domestic investment by foreigners, leaving little investment choice for domestic investors. B. reduction in the interest rate caused by governments running a deficit. C. reduction in domestic investment caused by governments running a deficit. D. irrational exuberance of the market reducing the number of rational investments available.
The demand curve for a typical good has
a. a negative slope because some consumers switch to other goods as the price of the good rises. b. a negative slope because the supply of the good rises as demand rises. c. a negative slope because the good has less "snob appeal" as its price falls. d. an inverse slope because as the price goes up, the good has more profitability. e. a positive slope because price is a clear indicator of need.
What is the value marginal product of labor if: P = $10, MPL = $25, and APL = 40?
A. $10,000 B. $250 C. $400 D. $1,000