Reference no: EM131099858

Social Security and Medicare are clear examples of: a. capitalism. b. market-determined services. c. market failures and externalities. d. governmental intervention in the market. "Second-hand" smoke, an often cited disadvantage of allowing smoking in restaurants, is referred to in economics as a(n): a. capital goods b. externality. c. economic cost. d. negative investment. Market failure means that: a. the strike organized by unionized employees fails to achieve its goal. b. too many outdated products are offered for sale in the local supermarket. c. there is overallocation or underallocation of resources to certain economic activity. d. an unexpectedly harsh winter shuts down a factory. Of the following groups, who gains from rent controls? a. Landlords b. Construction workers and their union leaders c. Poor people who have a hard time earning enough income to pay high rents d. High-income people who live in rent-controlled apartments In the United States, the minimum wage is defined as a. the wage that the youngest job entrant into the job market makes. b. the lowest wage that a corporation should pay a worker if the corporation wants to ensure that its c. employees are well trained. d. the lowest hourly wage rate a firm may legally pay its workers, as legislated by the U.S. government. the wage ceiling above which a firm no longer must pay its employees additional benefits.