Select the normative statement that completes the following sentence: If the minimum wage is raised:
A. cost per unit of output will rise.
B. workers will gain their rightful share of total income.
C. the rate of inflation will increase.
D. profits will fall.
Answer: B
Economics
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If an indifference map for a consumer is made up of straight, negatively sloped lines, the goods are
A) perfect complements. B) unrelated. C) perfect substitutes. D) not desirable.
Economics
Which of the following properties hold true for the equilibrium price-quantity combination?
a. Buyers who are willing to pay higher than the equilibrium price do not find sellers. b. At the equilibrium price producer surplus equals consumer surplus. c. The equilibrium output is produced at the lowest avoidable cost. d. The equilibrium output is produced at the lowest opportunity cost.
Economics