The rising minimum wage allegedly has reduced the quantity demanded of teenage labor. However, demographics slightly reduced the supply of teenage labor. The U.S. Department of Labor reported that teenage unemployment is an increasing problem. Which graph in Figure 4-10 is consistent with these facts?

Government growth has been caused by

A. citizens who want larger government. B. lots of public lands available in the West. C. increases in privatization. D. inflation.

When the size of a factory (and all its associated inputs) doubles and, as a result, output more than doubles,

A. Economies of scale must exist. B. The law of diminishing returns must not apply in the smaller factory. C. Marginal costs must be declining. D. The short-run ATC curve must be declining.