To say that turnips are inferior goods means that the income elasticity
A) is definitely greater than 1.
B) is definitely between 0 and 1.
C) is positive but could be greater than or less than (or equal to) 1.
D) is negative.
D
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Most economists will argue that the minimum wage causes unemployment. Even politicians will recognize this when pressed
However, typically liberals will tout the benefits of the minimum wage while conservatives will decry the disruption that it causes in the labor market. Which economic objective seems to be more important for liberals and which is more important to conservatives if this general observation is correct? Which side is right?
Which of the following union tactics, if successful, would increase wages and create a surplus of labor?
a. collective bargaining to fix the wage above the competitive level b. decreasing the marginal revenue product of the union workers c. increasing the demand for union-made products d. restricting the supply of nonunion products that compete with union-made products e. increasing labor productivity by minimizing conflicts and resolving differences between labor and management