Minimum wage laws
a. benefit all unskilled workers.
b. create unemployment, but if demand is relatively elastic, the unemployment effects will be minor.
c. may help the nonpoor, such as teenagers from wealthy families.
d. reduce poverty by reducing unemployment.
c
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At a price of $1 per table, the quantity supplied of tables is 100 units whereas the quantity demanded is 70 units. Given this information, which of the following statements is true?
A) $1 per table is the market clearing price. B) At $1 per table, there is a surplus in the market. C) At $1 per table, there is a shortage in the market. D) $1 per table is the equilibrium price.
A woman who decides to drive to work rather than take the bus
A) is wasting scarce resources. B) is behaving inefficiently. C) thinks driving is more economically efficient for her. D) is probably paying attention to personal comfort and convenience rather than economic efficiency.
The marginal social benefit is the:
A. benefit gained by the last user. B. sum of the marginal benefit gained by each individual user. C. total benefit gained by the last user. D. sum of the benefit gained by each individual user.
Refer to Figure 3.1. If one of the graphs represents the total cost of an activity, which other graph best represents the marginal cost of the activity?
A. A
B. B
C. C
D. D