Reduced when an effective minimum wage law

Assignment Help Business Economics

Reference no: EM131085868

Economic theory unambiguously predicts that total employment will be reduced when an effective minimum wage law is introduced:

A. in a monopsony labor market.

B. in a perfectly competitive labor market if all workers in this market are covered by the minimum wage law.

C. in a perfectly competitive market, even if some workers and firms are not covered by the minimum wage law.

D. under no circumstances

Reference no: EM131085868

Questions Cloud

Issue is positive-entirely normative or mixture of two : Suppose that you are a legislator in New York considering whether to exempt people using Airbnb from the rule that rooms in private homes have to be rented for at least 29 consecutive days. What considerations would you take into account in making a ..

Value of certain amounts of gold : What do you refer to a monetary system in which paper money and coins had the value of certain amounts of gold?

Cost of borrowing in the economy : What are the effects of higher interest rates on the cost of borrowing in the economy?

Engle-granger cointegration test procedures : 1. Describe how the Durbin Watson test in conducted and how the value of 2.0 is used when conducting D-W tests. 2. Explain why we need to use (tau)-test statistics, rather than t-test statistics in the D-F unit root tests 3. When and how so-called sp..

Reduced when an effective minimum wage law : Economic theory unambiguously predicts that total employment will be reduced when an effective minimum wage law is introduced:

Government expenditure and fixed exchange rate : The Chinese Renminbi was pegged to the USD before July 2005. Using the IS-LM-FX model for Home (China) and Foreign (US), illustrate how a decrease in G in China before July 2005 affected the following Chinese variables (increase, decrease, no chan..

Labor demand is more elastic when : Labor demand is more elastic when: A. the substitution effect resulting from a wage change is larger. B. the scale effect resulting from a wage change is larger. C. Both of the above are correct. D. None of the above is correct.

The conventional labor market theory : The conventional (classical) labor market theory suggests that i) the wage rate adjusts smoothly so that labor supply equals labor demand; ii) wages are set competitively across markets; iii) there is no ‘involuntary’ unemployment (anyone who wishes ..

Developing a personal learning philosophy assignment : ECH-125 what you have learned through your previous practicum experiences and use the balance of your practicum hours to discuss with your classroom teacher the elements of your personal learning philosophy.

User Account

All Pages