If minimum wage legislation does not cause unemployment, then:
A. those who work for minimum wage will benefit.
B. firms will generally gain by earning higher profits.
C. minimum wages may still be binding for many employees.
D. most likely the government won’t study how minimum wage legislation may affect employment.
A. those who work for minimum wage will benefit.
You might also like to view...
How will an increase in population affect the labor market?
A) It will increase the supply of jobs. B) It will shift the market supply curve. C) It will cause a decrease in the quantity of labor demanded. D) It will increase the opportunity cost of leisure.
Successful collusion requires all of the following except
a. a monopoly market with strong barriers to entry b. all firms cooperate, none cheat c. all firms belong to the same industry d. collusion will be more profitable than non-collusion e. the government does not interfere
A 1990 study of the market for collectable baseball cards suggested
a. there was no evidence of price discrimination on the basis of player position (hitter versus pitcher). b. markets in which the product price is low are not typically characterized by consumer-driven race discrimination. c. cards for white players (both hitters and pitchers) were 10 to 13 percent higher than those for comparable black players. d. cards for black players (both hitters and pitchers) were 10 to 13 percent higher than those for comparable white players.
Mrs. Smith operates a business in a competitive market. The current market price is $8.10 . At her profit-maximizing level of production, the average variable cost is $8.00, and the average total cost is $8.25 . Mrs. Smith should
a. shut down her business in the short run but continue to operate in the long run. b. continue to operate in the short run but shut down in the long run. c. continue to operate in both the short run and long run. d. shut down in both the short run and long run.