Which of the following statements about the minimum wage is correct?
a. An increase in the minimum wage enhances the well-being of all unskilled workers.
b. An increase in the minimum wage has no effect on the well-being of middle-class families.
c. Advocates of the minimum wage argue that the demand for labor is relatively inelastic.
d. Critics of the minimum wage argue that it is an undesirable way of helping the poor because it is costly to the government.
c
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"An objective of firms is to maximize profits". This statement:
a) has been proven by empirical testing to be always true. b) is a normative statement and thus cannot be tested. c) is an unrealistic assumption, and therefore of little use to economists d) is an assumption used by economists to predict the behaviour of firms. e) applies only to corporations
A country opens up to trade and exports computer chips. In the computer chip market, surplus has been redistributed from
A) consumers to producers. B) producers to consumers. C) producers to government. D) government to consumers.