Refer to the above figure. Suppose the government imposes a minimum wage rate of $20.00 per hour. This will likely result in
A) a surplus of labor.
B) a shortage of labor.
C) an equilibrium in the labor market.
D) an increase in the demand for labor.
A
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Entry in a perfectly competitive market
A) shifts the market supply curve rightward. B) decreases the market price. C) shifts the market supply curve leftward. D) Both answers A and B are correct.
Nonexcludable goods tend to be undersupplied because:
A. the free rider problem persists. B. people do not pay the true value of the good. C. people rarely willingly pay for something they could get for free, regardless of how much they value it. D. All of these statements are true.
Between 1998 and 2001, the federal budget was:
a. never in surplus. b. never in deficit. c. in surplus. d. in surplus about as often as it was in deficit.
From 2007 to 2009, the federal deficit as a percentage of GDP rose from about 2 percent to about 9 percent. This indicates that by 2009
A. most of the deficit was cyclical. B. most of the deficit was structural. C. all of the deficit was cyclical. D. all of the deficit was structural.