The market for unskilled labor is illustrated in the figure above. If a minimum wage of $5 per hour is imposed, an employer who breaks the law will be able to find a worker who is willing to work for
A) less than or equal to $4 per hour.
B) between $4 and $5 per hour.
C) more than or equal to $5 per hour.
D) None of the above because workers are not willing to supply labor for wage rates less than $5 per hour.
A
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A profit maximizing monopoly's price is
A) not consistently related to price that would prevail if the market was perfectly competitive. B) greater than the price that would prevail if the industry was perfectly competitive. C) less than the price that would prevail if the industry was perfectly competitive. D) the same as the price that would prevail if the industry was perfectly competitive.
The demand for money curve
A) shows the relationship between money demanded and open market operations. B) shows the relationship between the quantity of money balances demanded and the interest rate. C) is positively related to the interest rate. D) varies inversely with the supply of money.