Minimum wage laws cause unemployment because the legal minimum wage is set
A) below the market wage, causing labor demand to be greater than labor supply.
B) too low.
C) above the market wage, causing labor demand to be greater than labor supply.
D) below the market wage, causing labor demand to be less than labor supply.
E) above the market wage, causing labor demand to be less than labor supply.
E
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In the market for a particular pair of shoes, Jena is willing to pay $75 for a pair while Jane is willing to pay $85 for a pair. The actual price that each has to pay for a pair of shoes is $65. What is the combined amount of consumer surplus for Jena and Jane?
A. $215. B. $130. C. $10. D. $30.
Silvio's Pizza is a small pizzeria. The firm's production function is shown in the table above
Suppose that Silvio's costs include only the cost of renting ovens, which is $100 per oven per week, the labor cost, $280 per worker per week, and the opportunity cost of Silvio's entrepreneurship, $1,000 per week. Suppose Silvio's uses Plant 2. If Silvio hires the 4th worker, the firm will experience ________ marginal returns. A) diminishing B) increasing C) constant D) zero
If the MPC is 0, then the multiplier is
a. 0. b. 1. c. infinite. d. None of the above is correct.
Refer to the above figure. If box B represents the resource market and flow (3) represents money income, then:
A. box C is the product market and box D is households. B. box C is the product market and box A is households. C. box A is the product market and box C is households. D. box D is the product market and box C is households.