The above figure shows the market for finish carpenters in Bozeman. There is a minimum wage set at $18
Compared to the initial equilibrium without the minimum wage, once the minimum wage is in place, and after taking account of job search, the total workers' surplus ________ and the total firms' surplus ________. A) decreases; increases
B) increases; increases
C) increases; decreases
D) does not change; increases
E) decreases; decreases
E
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The best estimate of the effect of the euro on trade, according to Richard Baldwin, is a(n):
A) increase of 9%. B) increase of 235%. C) fall of 9%. D) fall of 7%.
A maximin strategy
A) maximizes the minimum gain that can be earned. B) maximizes the gain of one player, but minimizes the gain of the opponent. C) minimizes the maximum gain that can be earned. D) involves a random choice between two strategies, one which maximizes potential gain and one which minimizes potential loss.