Explain what would happen if the equilibrium wage in the labor market was below the legislated minimum wage
What will be an ideal response?
In this case the likely result will be unemployment. The higher wage will attract new entrants to the labor force (that is quantity supplied of labor will rise) but firms will hire fewer workers (the quantity demanded for labor will drop).
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Economists claim that measuring society's welfare as CS + PS
A) is inappropriate since ultimately everyone is a consumer. B) is valid only when the same person could be either a consumer or a producer. C) treats the gains to consumers and producers equally. D) is not commonly accepted.
The employment-population ratio is
a. percentage of the population unemployed b. percentage of the population employed c. the same as the unemployment rate d. always greater than 1 e. percentage of the population employed by the private sector.