When a minimum-wage law forces the wage to remain above the equilibrium level, it
a. raises both the quantity of labor supplied and the quantity of labor demanded compared to the equilibrium level.
b. raises the quantity of labor supplied and reduces the quantity of labor demanded compared to the equilibrium level.
c. reduces the quantity of labor supplied and raises the quantity of labor demanded compared to the equilibrium level.
d. reduces both the quantity of labor supplied and the quantity of labor demanded compared to the equilibrium level.
b
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A negative income tax system is designed to
a. provide in-kind benefits to the poor. b. provide a minimum income to the poor. c. reduce taxes on the rich when their incomes surpass the maximum income tax bracket. d. subsidize food consumption in poor families.
Assume that a city can earn an additional $100,000 of revenue each year from using drones to catch speeding drivers. What must the additional cost of using drones to catch speeders be to make this economically rational?
What will be an ideal response?