How would imposing a minimum wage above the market-clearing wage affect employment in a competitive labor market?
A. Employment would increase as firms would illegally hire workers below the original competitive wage.
B. Employment would increase as previously unemployed workers would be more encouraged to find a job.
C. Employment would be unchanged as workers are nonresponsive to low wages.
D. Employment would decrease as some workers who are willing to work at the lower competitive wage would no longer be able to find work.
E. Employment would increase because a higher minimum wage would create more jobs for low-skilled workers.
Answer: D
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When a nation joins the IMF, it deposits funds into an account. These funds have a value based on a weighted average of
A) the Russian ruble, the British pound sterling, the Japanese yen, and the U.S. dollar. B) the euro, the British pound sterling, the Japanese yen, and the U.S. dollar. C) the Russian ruble, the British pound sterling, the Chinese yuan, and the U.S. dollar. D) the euro, the British pound sterling, the Chinese yuan, and the U.S. dollar.
The most common type of interest-rate swap is
A) the plain vanilla swap. B) the basic swap. C) the ordinary swap. D) the notional swap.