The market for unskilled labor is illustrated in the figure above. The market is in equilibrium and then a minimum wage of $5 per hour is imposed. Unemployment will equal
A) 0 hours.
B) 10 million hours per year.
C) 20 million hours per year.
D) 30 million hours per year.
D
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A firm's retaining of earnings is really equivalent to the firm
A. decreasing the net worth of households. B. decreasing its own net worth. C. borrowing money from households. D. lending money to households.
Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower
All of the following contributed to a surge in international lending to developing countries in the mid-1970s to early 1980s EXCEPT
A. There was widespread pessimism about the profits that could be earned through new business investments in the industrial countries. B. The governments of the developing countries discouraged foreign direct investment (FDI). C. Oil-exporting countries had a high short-run propensity to save out of their extra income. D. Oil-exporting countries invested most of their increased savings in government bonds issued by developing-country governments.
The Group of Eight (G8) nations which periodically have jointly intervened to influence the value of the dollar include:
A. Canada, United States, France, Great Britain, Russia, Mexico, Germany, and Brazil. B. Canada, United States, France, Japan, Italy, Germany, Russia, and Great Britain. C. Canada, United States, Mexico, Brazil, Argentina, Peru, Uruguay, and Chile. D. Italy, France, Great Britain, Germany, Netherlands, Norway, Russia, and Sweden.