The general equilibrium analysis of a minimum wage applied to only some sectors of the economy suggests that

A) workers in all sectors will face increased wages.
B) some workers in the covered sectors will lose their jobs and remain unemployed.
C) some workers originally employed in the covered sectors will move to the uncovered sectors, driving down wages in the uncovered sectors.
D) all workers will be worse off.

C

Economics

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The federal budget deficit has been over 30 percent of GDP since the early 1980s

a. True b. False Indicate whether the statement is true or false

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If policymakers use a pollution tax to control pollution, the tax per unit of pollution should be set

A) equal to the marginal external cost at the economically efficient level of pollution. B) equal to the marginal private cost of production at the economically efficient level of pollution. C) equal to the amount of the deadweight loss created in the absence of a pollution tax. D) at a level low enough so that producers can pass along a portion of the additional cost onto consumers without significantly reducing demand for the product.

Economics