When the U.S. minimum wage was first passed in 1938, only 56% of workers were employed in covered firms. The incomplete coverage suggests that
A) the partial equilibrium ignores the movement of workers from uncovered sectors to covered sectors.
B) the decrease in employment is higher in general-equilibrium analysis.
C) the general-equilibrium analysis predicts the wage in uncovered sectors will fall.
D) all the workers will be worse off in both general- and partial-equilibrium analysis.
C
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Comparable worth advocates have proposed that employers be required by law to pay wage rates equal to the value of the job. The most telling objection to this proposal is that
A) employers will probably resist strenuously and successfully. B) it is in the interest of employers to adjust their hiring so as to make the value of the job equal to the wage rate that must be paid. C) the government has no legal authority to set wage rates in the private sector. D) this would leave little or nothing for profits.
Use the U.S. current account balance and international investment position to explain the relationship between the current account balance and the international investment position
What will be an ideal response?