According to the above figure, if the government imposes a minimum wage equal to Wm, the effect will be
A) a reduction in employment from Qe to Qm.
B) an increase in employment from Qe to Qm.
C) a decrease in labor supplied, from C to E.
D) an increase in labor supplied, from A to E.
A
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Suppose a monopolist charges a price corresponding to the intersection of the marginal cost and marginal revenue curves. If this price is between its average variable cost and average total cost curves, the firm will:
a. earn an economic profit. b. stay in operation in the short-run, but shut down in the long run if demand remains the same. c. shut down. d. none of these.
Which of the following is false?
A) When the U.S. government imposed price ceilings on gasoline, the result was a surplus of gasoline. B) When the U.S. government imposed price ceilings on gasoline, the result was a shortage of gasoline. C) If a price ceiling is imposed below the equilibrium price in a given market, the result is a shortage in that market. D) First-come-first-served is a commonly used rationing device.
If leisure activities become more attractive, there will be a
A. Rightward shift of the labor supply curve. B. Movement up the labor supply curve to the right. C. Movement down the labor supply curve to the left. D. Leftward shift of the labor supply curve.
A record crop can lead to
A) Sharp declines in cash receipts from sale of production and higher input prices taxes. B) Sharp declines in farm product prices and cash receipts from sale of production. C) Sharp declines in input use and cash receipts from sale of production. D) None of the above