A binding minimum wage
a. alters both the quantity demanded and quantity supplied of labor.
b. affects only the quantity of labor demanded; it does not affect the quantity of labor supplied.
c. has no effect on the quantity of labor demanded or the quantity of labor supplied.
d. causes only temporary unemployment because the market will adjust and eliminate any temporary surplus of workers.
a
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“The market has failed to provide enough rental housing in New York City. This demonstrates another failure of free markets-they may lead to shortages of necessities.” Explain why you agree or disagree.
What will be an ideal response?
The benefits of economic growth are ________, while the costs of economic growth are ________.
A. increased output per person; too small for concern B. more current consumption; less future consumption C. increased output per person; less future consumption D. increased output per person; the consumption sacrificed in exchange for capital formation