If skilled and unskilled labor are substitutes, then an increased minimum wage would tend to
A) reduce the demand for both unskilled and skilled workers.
B) reduce the quantity demanded of unskilled workers and increase the demand for skilled workers.
C) reduce the demand for unskilled workers and increase the quantity demanded of unskilled workers.
D) reduce the quantity demanded for both unskilled and skilled workers.
B
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If the government replaces a lump sum tax with a proportional labor income tax, then
A) employment and output increase. B) employment increases and output decreases. C) employment decreases and output increases. D) employment and output decrease.
I get $200 revenue from the sale of my product each day. I rent the factory that I use for $90 a day. The raw materials of the operation cost $115 a day. I do all the work myself. Both jobs are equally attractive as far as the work is concerned. Recently, a competitor offered me $30 a day to work for him. My accounting profit is ________, and my economic profit is ________.
A. -35; -35 B. 110; -30 C. 25; -5 D. -5; -35
Which statement is true?
A. Virtually all of the poor receive public assistance, but not food stamps. B. Virtually all of the poor receive food stamps, but not public assistance. C. Virtually all of the poor receive public assistance and food stamps. D. None of these statements are true.
Depreciation:
A. estimates the decrease in value of capital goods due to wear and tear over the year. B. represents a firm's expenditure to add to its capital stock. C. is the reduction in business inventories per year. D. is the decline in the value of a firm's stock.