Those who oppose minimum wage legislation argue that:
A. setting a wage above the market-clearing equilibrium creates unemployment.
B. it should be set below the market-clearing equilibrium.
C. workers deserve a basic standard of living.
D. the way to get an efficient labor market is for government intervention.
A. setting a wage above the market-clearing equilibrium creates unemployment.
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A federal system consists of one level of government to provide public goods and services.
A. True B. False C. Uncertain
Which of the following does NOT describe the intended purpose of the antitrust laws of the United States?
A) to promote competition within the economic system B) to reduce the power of monopolies C) to prohibit certain economic activities that promote trade D) to restrict the formation of monopolies
The principle of comparative advantage essentially states that
A) there are some goods for which the opportunity costs of production are the same regardless of who produces them. B) some goods have high opportunity costs and low absolute costs. C) specialization can reduce output rather than increase it. D) total output of an economic system is greatest when each good is produced by those who have the lowest opportunity cost of producing the good.
A cost that has already been incurred and cannot be recovered is called:
a. fixed cost. b. explicit cost. c. sunk cost. d. opportunity cost.