If the equilibrium wage in the market for unskilled labor is $8.00 per hour, and the government sets a minimum wage at $7.50 per hour, unskilled workers will receive a pay cut of about 50 cents per hour.
Answer the following statement true (T) or false (F)
False
Since the equilibrium wage is still legal, the market will remain at the original equilibrium. Competition in the labor market will prevent wages from falling.
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The entry of AT&T and GM into the credit card business is an indication of
A) government's efforts to deregulate the provision of financial services. B) the rising profitability of credit card operations. C) the reduction in costs of credit card operations since 1990. D) the sale of unprofitable operations by Bank of America and Citicorp.
Commitment strategies:
A. are not necessary to reach a mutually beneficial equilibrium in repeated games. B. are always needed to reach a mutually beneficial equilibrium in single-round games. C. usually fail to work. D. are not observed in reality.
Which of the following is correct concerning opportunity cost?
a. Except to the extent that you pay more for them, opportunity costs should not include the cost of things you would have purchased anyway. b. To compute opportunity costs, you should subtract benefits from costs. c. Opportunity costs and the idea of trade-offs are not closely related. d. Rational people should compare various options without considering opportunity costs.
Negotiation and cooperation are most effective in reducing the problems that people inflict upon one another when
What will be an ideal response?