According to the above figure, if the government imposes a minimum wage equal to Wm, the effect will be
A. an increase in employment from Qe to Qm.
B. an increase in labor supplied, from A to E.
C. a reduction in employment from Qe to Qm.
D. a decrease in labor supplied, from C to E.
Answer: C
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Monetary Policy Shortcomings ?
As opposed to GDP, GNP tries to measure
A) the happiness of a nation. B) the value of all intermediate goods produced in a nation. C) the economic performance of a nation's citizens regardless of where they happen to be producing. D) the economic performance of a country's economy regardless of the nationality of the producers.
If Mother Teresa had spent $190,000 on a leprosarium in Calcutta, how would her purchase have directly affected U.S. GDP?
A) It would remain unchanged because the expenditure occurred outside the domestic economy. B) It would remain unchanged because Mother Teresa was not acting out of her own selfish interests. C) It would have increased by $190,000. D) It would have decreased by $190,000.
If the shopkeeper goes first and quotes a low price, what is the best response of the customer?
a. Accept the low price happily b. Walk away from the deal c. Slam the storeowner's door on the way out d. Laugh at the storeowner