What is a good argument for using the model of the consumer despite the fact that it requires making many simplifying assumptions?
A) It is complex to solve.
B) The assumptions are sometimes realistic.
C) It explains observed patterns of behavior.
D) It is used in many scholarly fields.
C
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The percentage of people employed aged 16 years and older divided by the working-age population is known as the
A) employment rate. B) employment-to-population ratio. C) labor force participation rate. D) working-age population ratio.
Suppose that the equilibrium wage in the low-skilled labor market is $9.25. Further, suppose the federal government raises the minimum wage to $9.00 an hour from its present level of $8.15
The government's action of increasing the minimum wage will result in A) a decrease in unemployment. B) an increase in unemployment. C) a shortage of low-skilled labor. D) neither a shortage nor a surplus of labor in the low-skilled labor market.
All real-world Lorenz curves are below the diagonal line because income is always distributed unequally in the real world.
Answer the following statement true (T) or false (F)
How much is the firm's ATC?
