Which, if either, of the following two statements is TRUE?
I. A minimum wage set above the equilibrium wage will create a surplus of labor.
A. I only.
B. II only.
C. Both I and II are true.
D. Neither I nor II is true.
Answer: A
I. A minimum wage set above the equilibrium wage will create a surplus of labor.
II. A rent ceiling set above the equilibrium rent will create a surplus of apartments.
A. I only.
B. II only.
C. Both I and II are true.
D. Neither I nor II is true.
Answer: A
Microeconomics
- An increase in the price level may be caused
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- In 1998, the U.S. economy was at full employment which means that
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- Suppose the price of a key productive resource such as fuel increases. Other things being equal, which of the following will be a consequence of the increase in fuel price?
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- An unanticipated increase in the inflation rate during this year will
- Which of the following statements is true?
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- Other things being equal, an increase in the average product of labor in steel production will
- A corporation earns $10 million in revenue this year. Accounting costs are $5 million for the year. The corporation owns assets valued at $20 million and has no debts. If the opportunity cost of capital for shareholders of the corporation is 10% it follows that the corporation's economic profit is
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- The supply of land is perfectly inelastic when