Which of the following is not correct?
a. Critics argue that minimum-wage laws hurt the very people they are intended to help.
b. Minimum-wage laws may increase unemployment among the groups of workers affected by the minimum wage.
c. If the demand for unskilled labor is relatively inelastic, the higher wage will produce more unemployment than if the demand for unskilled labor is relatively elastic.
d. Minimum-wage laws may benefit teenagers from middle-class families, so the policy is not a precise way to help the poor.
c
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When a third party pays a larger and larger share of the purchasing price of a good, economic theory indicates that the
a. demand for the good will decline. b. consumers of the good will have less and less incentive to economize on its use. c. suppliers of the good will have a stronger incentive to provide the good at low prices. d. prices of the good will tend to decline with the passage of time.
Many economists believe that a family bases its spending decisions on its permanent, or average, income rather than on transitory income
a. True b. False Indicate whether the statement is true or false