In a competitive labor market, a minimum wage law set above the equilibrium wage rate
A) creates a shortage of labor.
B) causes equality between the quantity of labor supplied and the quantity demanded.
C) creates a surplus of labor.
D) lowers the wage rate paid to workers.
E) has no impact.
C
Economics
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If planned investment changes as interest rates change, then
A) autonomous consumption changes. B) autonomous investment changes. C) total expenditures and output changes. D) the marginal leakage rate changes.
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If a perfectly competitive industry is in long-run equilibrium, then
A) price equals average cost. B) price is greater than average cost and equal to marginal cost. C) all firms earn the same accounting profits. D) marginal cost is less than average cost.
Economics