A substantial increase in the legal minimum wage will tend to
A) expand employment by increasing purchasing power and hence the demand for output.
B) improve the position of the least skilled persons in the labor force.
C) reduce employment by raising the cost of hiring some employees above their expected worth to potential employers.
D) reduce the wages of highly skilled and highly paid employees.
C
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The aggregate supply curve will be vertical when:
a. output can be increased without an increase in the price level. b. the economy is operating at full-employment capacity. c. output and price level rise together. d. the aggregate demand curve is shifting to the left. e. aggregate demand is absent.
The World View article "Russia's Sable Monopoly Persists" provides evidence that
A. Output of sable is lower than it would be in a competitive market. B. There are no barriers to entry in the sable market. C. Long-run economic profit is zero. D. Prices are lower than they would be in a competitive sable market.
The change in the total utility as a result of increasing consumption by one unit is known as
A) marginal utility. B) average utility. C) proportional utility. D) utils.
When long-run average costs decrease as a result of industry growth, there are
A. external diseconomies. B. external economies. C. internal economies. D. internal diseconomies.