Minimum wage laws contribute to structural unemployment by:
A. keeping wages below the market-clearing level.
B. forcing unemployed workers to take the first job offered to them.
C. allowing unemployed workers to search longer or less intensively for jobs.
D. keeping wages above the market-clearing level.
Answer: D
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When the real wage is above the level that equilibrates supply and demand, then the quantity of labour supplied:
A. depends on the nominal wage. B. is smaller than the quantity of labour demanded. C. is equal to the quantity of labour demanded. D. is greater than the quantity of labour demanded.
From 2000 to 2014, the dollar depreciated substantially against other currencies. This drop in value most likely benefitted
A) European citizens traveling in the U.S. B) U.S. citizens traveling in Europe. C) U.S. manufacturers importing parts from abroad. D) U.S. citizens purchasing foreign-made automobiles.