Which of the following is the purpose of a minimum wage?
a. To reduce the wage rates of high-income workers
b. To keep a track of the changes in the wage rate in an unskilled labor market
c. To deal with the problem of unemployment in the market
d. To help increase the profits earned by the producers
e. To raise the wage rate for the lowest income workers
e
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What determines potential GDP?
What will be an ideal response?
Answer the following statement(s) true (T) or false (F)
1. A country or region’s comparative advantage is based on its natural resources and therefore does not change over time. 2. Because cocaine and stolen identity information are illegal, there are no markets for these items. 3. The market price reflects the value buyers place on a good or service and the cost to society of producing it. 4. Government price controls effectively endow the market price with meaning for buyers and sellers.