What happens to the quantity of labor supplied, the quantity of labor demanded, and the number of unemployed workers if the minimum wage rate set above the equilibrium wage is increased still higher?
What will be an ideal response?
Ques. 2When Jitters Coffee Company, Inc, can lower the cost of packaging a pound of coffee by doubling the quantity packaged each day, it is achieving
A) economies of scale.
B) economies of scope.
C) economies of team production.
D) all of the above
Ques. 3John's utility of wealth curve is shown in the above figure. He currently has wealth of 20,000. If the state lottery offers a 1 in 10,000 chance of winning 10,000, John will
A) pay whatever price it takes to play.
B) pay 1 to play this game.
C) pay less than 1 to play this game.
D) not be willing to play this game at any price.
Ques. 4In 2012 Nike reduced the price of its running shoes by 20 percent. As a result, the substitution effect caused
A) the demand for Nike shoes to increase.
B) people to switch from Adidas shoes and buy more Nikes.
C) the relative price of Nikes to increase.
D) the demand curve for Nikes to shift rightward.
Ques. 5What is the price elasticity of demand and how is it measured?
What will be an ideal response?
Ques. 6If an indifference map for a consumer is made up of straight, negatively sloped lines, the goods are
A) perfect complements.
B) unrelated.
C) perfect substitutes.
D) not desirable.
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