For this question, assume that Y = N. Based on our understanding of the labor market model presented in Chapter 6, we know that an increase in the minimum wage will cause
A) an increase in the natural level of output.
B) a reduction in the natural level of output.
C) no change in the natural level of output.
D) an increase in the natural level of employment.
B
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An investment in yourself is an investment in what economists call human capital
a. True b. False Indicate whether the statement is true or false
Janelle earned a salary of $62,000 in 2004 and $80,000 in 2014 . The consumer price index was 126 in 2004 and 170 in 2014 . Janelle's 2004 salary in 2014 dollars is
a. $45,953. b. $89,280. c. $107,953. d. $83,651.
Answer the following questions true (T) or false (F)
1. Monopolistic competition differs from oligopoly in that in monopolistic competition firms act independently while in oligopoly firms act interdependently. 2. An entry barrier exists when firms in an industry charge the lowest price possible for their products. 3. If economies of scale are significant, the typical firm will not reach the minimum point on its long-run average cost curve until it has produced a large fraction of industry sales.
Who said: "Wealth has never been a sufficient source of honor in itself. It must be advertised and the normal medium is obtrusively expensive goods."
A. The theory would predict that people's consumption would be greater than their income until their mid to late 20s. B. A person who won a prize would spend at least 50 percent of their winnings in the first year. C. Consumption is greater than income when people reach old age. D. People gear their consumption to their expected earnings more than to their current income.