Author Question: One way to remove the excess labor supply problem from a minimum wage policy is to have the ... (Read 33 times)

beccaep

  • Hero Member
  • *****
  • Posts: 535
One way to remove the excess labor supply problem from a minimum wage policy is to have the government hire all unemployed workers at the minimum wage. What is the key drawback of this version of a minimum wage policy?
 
  A) The deadweight loss may increase substantially.
  B) The cost to the government may be very large.
  C) Consumer surplus losses increase further.
  D) A and B are correct.
  E) B and C are correct..

Question 2

Two firms, each producing different goods, can achieve a greater output than one firm producing both goods with the same inputs. We can conclude that the production process involves
 
  A) diseconomies of scope.
  B) economies of scale.
  C) decreasing returns to scale.
  D) increasing returns to scale.



vseab

  • Sr. Member
  • ****
  • Posts: 323
Answer to Question 1

D

Answer to Question 2

A



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Recent studies have shown that the number of medication errors increases in relation to the number of orders that are verified per pharmacist, per work shift.

Did you know?

More than 20 million Americans cite use of marijuana within the past 30 days, according to the National Survey on Drug Use and Health (NSDUH). More than 8 million admit to using it almost every day.

Did you know?

Most strokes are caused when blood clots move to a blood vessel in the brain and block blood flow to that area. Thrombolytic therapy can be used to dissolve the clot quickly. If given within 3 hours of the first stroke symptoms, this therapy can help limit stroke damage and disability.

Did you know?

Stroke kills people from all ethnic backgrounds, but the people at highest risk for fatal strokes are: black men, black women, Asian men, white men, and white women.

Did you know?

Serum cholesterol testing in adults is recommended every 1 to 5 years. People with diabetes and a family history of high cholesterol should be tested even more frequently.

For a complete list of videos, visit our video library