If a minimum wage is set above the equilibrium market wage,
A) lower-skilled workers will have an easier time finding jobs.
B) the quantity of labor demanded will be below the quantity of labor supplied.
C) the quantity of labor supplied will be below the quantity of labor demanded.
D) highly-skilled workers will have a harder time finding jobs.
B
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John has an economics test tomorrow. He must study and has planned the rest of his day so that he can fit some study time in. He has decided to go to the gym and then study for several hours. Which of the following statements is TRUE?
A) John did not use the economic way of thinking because his decision on how to allocate his time did not involve money. B) John's decision on how to allocate his time is inconsistent with the rationality assumption since he has decided to go to the gym. C) John's decision on how to allocate his time is consistent with the rationality assumption since the decision is intended to make him better off. D) John's decision does not involve his pursuit of self-interest.
Suppose the only two goods that Charlie consumes are wine and cheese. When wine sells for $10 a bottle and cheese sell for $10 a pound, he buys 6 bottles of wine and 4 pounds of cheese — spending his entire income of $100 . One day the price of wine falls to $5 a bottle and the price of cheese increases to $20 a pound, while his income does not change. The bundle of wine and cheese that he
purchased at the old prices now costs a. the same amount at the new prices. b. less than Charlie's income at the new prices. c. more than Charlie's income at the new prices. d. We do not have enough information to answer the question.