Minimum wage laws cause unemployment because the legal minimum wage is set
A) below the market wage, causing labor demand to be greater than labor supply.
B) below the market wage, causing labor demand to be less than labor supply.
C) above the market wage, causing labor demand to be greater than labor supply.
D) above the market wage, causing labor demand to be less than labor supply.
Answer: D
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Rational ignorance means
A) ignorance is rationed. B) the benefit from some information is not worth the cost of collecting it. C) some people do not understand rationality. D) the information is unavailable.
Political corruption occurs whenever:
A. logrolling is used to secure votes for controversial legislation. B. government officials use unlawful misdirection of governmental resources for their own personal gain. C. special interest groups contribute to elected officials, who in turn support legislation that benefits the special interest group. D. there is pork barrel politics involved.