What is a minimum wage? What are the effects of a minimum wage set below the equilibrium wage rate?
What will be an ideal response?
A minimum wage is a regulation that makes it illegal to pay or receive a wage rate lower than a specified level. If a minimum wage is set below the equilibrium wage, the minimum wage has no effect because it does not make the equilibrium wage rate illegal.
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A ____ total cost function implies that marginal costs ____ as output is increased
a. linear; increase linearly b. quadratic; increase linearly c. cubic; increase linearly d. a and b e. none of the above
Spending VCU4 on real-world goods and services causes the nation's:
a. Demand for real goods and services to remain the same and monetary base to remain the same. b. Demand for real goods and services to remain the same and M2 money supply to fall. c. Demand for real goods and services to rise and M2 money multiplier to remain the same. d. Demand for real goods and services to rise and M2 money supply to rise.