If the minimum wage applies to one sector (the covered sector) but not another sector (the uncovered sector), an increase in the minimum wage in the covered sector is likely to result in which of the following?
A. less employment in the uncovered sector
B. a lower wage in the covered sector
C. workers willingly leaving the covered sector for the uncovered sector in search of higher wages
D. a lower wage in the uncovered sector
E. greater employment in the covered sector
Answer: D
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What determines whether the industry long-run supply curve is upward sloping or horizontal?
What will be an ideal response?
Historical data representing consumption and disposable income reveals that
a. during the 1930s, U.S. saving was at a high level. b. U.S. citizens increased saving during World War II. c. there is no systematic relationship between the two. d. consumption rises faster than disposable income during recessions.
Where Y is GDP, C is consumption, I is investment, (G ) is government spending, (T ) is net taxes, and there is no international trade, public saving equals:
A. T - G. B. Y + T - G. C. Y - C - T. D. Y - T - C.
List the four criteria that are generally used to evaluate economic outcomes
What will be an ideal response?