What are the effects of a minimum wage set below the equilibrium wage?
What will be an ideal response?
If the minimum wage is set below the equilibrium wage, then the law has no impact on the labor market equilibrium wage and quantity.
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Which of the following is true of fiscal spending at the federal, state, and local levels of the U.S. government?
a. In 2009, total government spending equalled around $1 billion. b. Investment expenditure in the U.S. exceeds the total spending at all levels of government. c. Government spending at federal, state, and local levels declined steadily from the 1960s until about 1980. d. Through the 1950s and 1960s, the U.S. government maintained a balanced budget. e. Federal government spending exceeds state and local government spending in the U.S.
The purchases made by the foreign sector are called __________; the purchases made by the household sector are called __________; the purchases made by the government sector are called __________; and the purchases made by the business sector are called investment
A) net exports; consumption; net interest B) net exports; domestic spending; government purchases C) net exports; consumption; government purchases D) exports; domestic spending; government product E) imports; consumption; government expenditures
If your firm is producing a good at a level where marginal revenue equals marginal cost, and price is between average variable cost and average total cost, then in the short run your firm should:
A. shut down and suffer a loss equal to your fixed costs. B. continue to produce, but increase output. C. continue to produce at the same level of output. D. continue to produce, but decrease output.
Utility analysis helps economists understand
A. how to eliminate opportunity costs. B. how to eliminate scarcity. C. how people make decisions about what they buy and how much. D. none of these.