A reduction in the minimum wage will tend to cause which of the following?
A. a reduction in poverty
B. a reduction in the quantity demanded of labor
C. an increase in the number of workers employed
D. an increase in the quantity supplied of labor
Answer: C
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The IMF conditionality may include
A) changes in the fiscal and monetary policies of the country facing the financial crisis. B) changes in the exchange rate policies. C) regulating and restructuring the financial sector of the economy of the country in crisis. D) structural policies affecting international trade and public enterprises. E) All of the above.
The equation of exchange states that
A) saving equals investment. B) gross domestic product equals the money supply multiplied by its velocity. C) increases in money supply cause decreases in velocity. D) increases in money supply cause increases in velocity.
Comparing a perfectly competitive market to a monopoly, which of the following is true?
A. Price will be higher and quantity will be lower in the perfectly competitive market than in the monopoly. B. Price will be higher than marginal cost in the perfectly competitive market but will be equal to marginal cost in the monopoly. C. Price will be equal to marginal revenue in the perfectly competitive market but will be higher than marginal revenue in the monopoly. D. at that point on the market demand curve which intersects the marginal cost curve.
Which principle states that as the production of one good expands, the opportunity cost of producing another unit of this good generally increases?
A. Principle of total cost B. Principle of increasing cost C. Principle of opportunity cost D. Principle of increasing marginal utility