If the minimum wage is set
A) above the equilibrium wage rate, it will create unemployment.
B) equal to the equilibrium wage rate, it will create a shortage of labor.
C) below the equilibrium wage rate, it will create unemployment.
D) equal to the equilibrium wage rate, it will create a surplus of labor.
E) below the equilibrium wage rate, it will create a shortage of labor.
A
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If the government decreases the tax on cell phones, ________
A) the deadweight loss decreases B) the consumer surplus does not change because sellers will not lower the price of a cell phone C) the number of cell phones purchased does not change D) the market becomes less efficient because the government collects less tax revenue
The major tools of monetary policy available to the Federal Reserve System are
A) reserve requirements, margin regulations, and moral suasion. B) reserve requirements, open-market operations, and the discount rate. C) open-market operations, margin regulations, and moral suasion. D) the discount rate, margin regulations, and moral suasion.