A minimum wage law that sets the minimum below the equilibrium wage rate will
a. create unemployment
b. have no effect on employment
c. increase employment
d. raise the equilibrium wage rate
e. lower the equilibrium wage rate
B
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If a typical firm in a perfectly competitive industry is incurring losses, then
A) some firms will enter in the long run, causing market supply to increase and market price to rise increasing profit for all firms. B) some firms will exit in the long run, causing market supply to decrease and market price to fall increasing losses for the remaining firms. C) some firms will exit in the long run, causing market supply to decrease and market price to rise increasing profits for the remaining firms. D) all firms will continue to lose money.
Transaction deposits
A) are deposits in a thrift institution or a commercial bank on which a check may be written. B) are only deposits that you can check on through the Internet. C) include savings accounts. D) are accounts that pay interest to the depositor.