Which of the following is an effect of a minimum wage law that establishes a ceiling wage below the current market clearing wage?
A) Surplus labor, or unemployment
B) A decrease in the market clearing wage
C) A decrease in the quantity of labor supplied
D) An increase in the quantity of labor supplied
A
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Aggregate supply is
A) the horizontal summation of all supply curves for services. B) the sum of all planned production in the economy. C) the stock of all goods in the economy. D) the summation of all product supply curves.
The funds to pay for police protection are usually raised through taxation because
a. police protection would be hard to provide exclusively to those who voluntarily pay for it b. people would not voluntarily pay salaries to officials who might arrest them c. police protection is a basic necessity d. goods financed through taxation can be guaranteed to all who pay for it e. the government believes that those who receive the benefits from the service should pay for it