The figure above shows the market for low-skilled labor in Midland city. The government sets a minimum wage at $6 per hour. With the minimum wage law enacted, the potential loss from job search in Midland city is

Explain why contracts are beneficial to markets

What will be an ideal response?

The fact that private sector economic agents cannot be systematically fooled by economic policymakers is implied by

A) the Phillips curve. B) time inconsistency. C) commitment. D) the rational expectations hypothesis.