Between 1991 and 2008, the federal minimum wage increased from $4.25 per hour to $6.55 per hour, while the CPI increased from 136.2 to 215.3 . We can conclude from this that
a. the minimum wage increased in nominal and in real terms.
b. the minimum wage decreased in nominal terms but increased in real terms.
c. the minimum wage increased in nominal terms but decreased in real terms.
d. more information is needed to determine what happened to the real minimum wage over the period.
C
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Use the diagram above to identify the pre-trade situation for Australia and Sri-Lanka
Where on the K/L axis will you find each of the two countries? Which of the two countries has a higher relative wage, w/r? Which product is the labor intensive, and which is the land intensive one? Show where the relative price of cloth to food will be found once trade opens between these two countries. Show where the relative wages of each will appear.
With regard to the question "What were the lives of those who died in the Civil War (1861–1865) worth?" Hughes and Cain (2011) conclude that
(a) there is no way to answer this question because people have infinite worth. (b) an estimate can be made by calculating the value of the loss of "human capital." (c) the worth was close to zero because of the surplus of population that existed at the time. (d) the worth of Northern lives lost was greater because the Northerners were fighting against the evils of slavery.
If the demand curve for comic books is expressed as Q = 10,000/p, then demand has a unitary elasticity
A) only when p = 10,000. B) only when p = 100. C) always. D) never.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4Refer to Figure 2.4. The economy moves from Point E to Point B. This could be explained by
A. a change in society's preferences for hybrid cars versus motorcycles. B. an increase in economic growth. C. an increase in unemployment. D. a reduction in unemployment.