A minimum wage set above the equilibrium wage will
A) create a shortage of labor.
B) create a surplus of labor.
C) have no effect because the equilibrium level of employment is not affected by a minimum wage above the equilibrium wage.
D) create a lower wage rate for skilled workers than for unskilled workers.
B
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Suppose that the Home country in the twosector (manufacturing and agriculture) specificfactors model has a comparative advantage in manufacturing output. What will happen to the amount of land used in producing agricultural output when trade occurs?
a. It will fall. b. It will rise. c. It will not change. d. It will first fall, then rise.
A consumer values a car at $30,000 and a producer values the same car at $20,000 . What amount of tax will result in unconsummated transaction?
a. $4,000 b. $9,000 c. $15,000 d. $2,000