Proponents of the minimum wage implicitly assume that the ________ if they discount the unemployment effects of the policy.
A. demand curve for unskilled workers is inelastic
B. supply curve for unskilled workers is inelastic
C. supply curve for unskilled workers is highly elastic
D. demand curve for unskilled workers is highly elastic
Answer: A
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A perfectly competitive firm incurs a loss in the short run, if at the profit maximizing level of output:
a. the marginal revenue curve lies below the marginal cost curve. b. the marginal revenue curve lies above the average revenue curve. c. the average cost curve lies below the average revenue curve. d. the average revenue curve lies below the average cost curve. e. the marginal revenue curve lies above the marginal cost curve.
Large sport utility vehicles (SUVs) add significantly to air pollution because they do not have to meet passenger auto emission standards. The purchase of an SUV
a. adds less to GDP since the pollution costs are subtracted from GDP. b. adds to nominal but not real GDP because of the pollution costs. c. is a net loss to GDP because the pollution costs are so large. d. increases GDP.
The nominal exchange rate is the
A) rate of return on Treasury bills, notes, and bonds. B) rate at which stocks and bonds may be exchanged for currency. C) the rate at which domestic bank deposits and foreign bank deposits are exchanged. D) the price of one country's currency in terms of another country's currency.
Studies of human decision making reveal several systematic mistakes people make. Which of the following is not an example of one of these mistakes?
a. Tom tells everyone he's sure he can run a 5K in twenty-five minutes, but then tries a couple of times and takes over thirty minutes. b. Kate hears a news report about five people dying from a tornado in Kansas and decides to cancel her plans to visit her aunt there. c. Randi is a strong proponent of raising the minimum wage. She reads a research report on the effects of increasing the minimum wage and begins to doubt her previous thinking. d. Jenny is shopping for a new car and has found that Hondota cars consistently get high quality ratings. Her friend had trouble with her Hondota, so Jenny decides not to purchase a Hondota.