Refer to Table 4-7. If a minimum wage of $11.50 is mandated there will be a
A) shortage of 40,000 units of labor. B) surplus of 20,000 units of labor.
C) surplus of 40,000 units of labor. D) shortage of 20,000 units of labor.
C
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If a consumer is choosing the optimal combinations of two goods X and Y, and then the price of good Y decreases, this causes:
a. MU/P of good X to increase, so the consumer now must buy more X to find a new optimal combination. b. demand for good X to increase. c. MU/P of good Y to increase, so the consumer now must buy more Y to find a new optimal combination. d. MU/P of good Y to decrease, so the consumer now must buy more Y to find a new optimal combination. e. the demand for good X and good Y will not change.
The slope of a budget line: a. is the negative of the price ratio, -PX/PY b. depends on income
c. depends on preferences. d. is positive.