Q 1: Which of the following individuals lose as a result of an effective minimum

Question

Q 1: Which of the following individuals lose as a result of an effective minimum wage law?

Select one:

a. Those who remain employed after the minimum wage is instituted

b. Teenagers who lose their jobs and valuable on-the-job training

c. Skilled workers who earn wages above the minimum wage

d. Those who find jobs after the minimum wage is instituted

e. None of the choices

Question 2

Which of the following is an implicit cost of an illegal marijuana growing operation?

Select one:

a. Foregone income due to time spent managing the operation

b. Lost time if the manager is caught

c. Lost liberty if the manager is jailed

d. The value of the time spent avoiding detection

e. All of the choices

Q 3: Which of the following represents the demand curve for labor for a firm?

Select one:

a. The MR curve

b. The MP curve

c. The MRP curve

d. The MC curve

e. None of the choices

Question 4

Which of the following is the primary goal of an economy?

Select one:

a. Maximizing economic growth

b. Minimizing unemployment

c. Minimizing the effects of scarcity

d. Maximizing GDP

e. Minimizing the national debt

Q 5: One of the problems in paying subsidies to the poor is that

Select one:

a. it may reduce incentives to work.

b. the poor will not spend it on the right things.

c. it will cause inflation.

d. it will require a cutback in the farm price support programs.

e. none of the choices.

Explanation / Answer

Question 1

Effective minimum wage implies wage rate above the equilibrium wage rate.

Such scenario leads to decrease in quantity of labor demanded and employed.

Minimum wage law generally applied to unskilled workers especially teenagers.

So,

Teenagers who lose their jobs and valuable on-the-job training are the losers when effective minimum wage law is enacted.

Hence, the correct answer is the option (b).

Question 2

In case of illegal marijuana growing operation, peole undertaking such operations spent lots of time in carrying on activities so that they can avoid detection from authorities.

So,

The implicit cost of an illegal marijuana growing operation is the value of time spent avoiding detection.

Hence, the correct answer is the option (d).

Question 3

Marginal revenue product (MRP) curve represents the demand curve for labor of a firm.

Hence, the correct answer is option (c).

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