The "elasticity argument" criticizing traditional economic analyses of the minimum wage implies that
A. the short-run marginal productivity of workers is independent of the number of workers employed.
B. any increase in employment greatly reduces the marginal productivity of employed workers.
C. any increase in employment greatly increases the marginal productivity of employed workers.
D. patriotic employers should want to pay their American employees more than their foreign employees.
Answer: A
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If we compare the United States to France, the U.S. tax wedge is ________ the French tax wedge
A) smaller in the labor market and larger in the goods market than B) equal to C) not comparable to D) larger than E) smaller than
Over the last 50 years, the rich have:
A. become richer, and the poor have become poorer. B. become richer, and the poor have become richer, too. C. become relatively poorer, and the poor have become relatively richer. D. become relatively poorer, and the poor have become relatively poorer, too.
Other things the same, if the long-run aggregate supply curve shifts right, prices
a. and output both increase. b. and output both decrease. c. increase and output decreases. d. decrease and output increases.
The size of the deadweight loss generated from a tax is affected by the
a. elasticities of both supply and demand. b. elasticity of demand only. c. elasticity of supply only. d. total revenue collected by the government.