Question 1

Explain why it is important to differentiate between the "number of unskilled workers" and the "number of unskilled labor hours" when evaluating the impact on the market for unskilled labor of a change in minimum wage.

Accepted Answer

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Question 2

List and describe the two major jobs performed by price.

Accepted Answer

The answer of List and describe the two major jobs...

Question 3

What condition is necessary for a price floor to have an impact on a market? Describe two effects that a price floor can have on a market.

Accepted Answer

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Question 4

In 1973 and 1979,the U.S.federal government imposed price ceilings on gasoline which resulted in surpluses of gasoline.

Accepted Answer

The price ceilings on gasoline led to shortages, not surpluses, because the artificially low prices increased demand while discouraging supply.

Question 5

What condition is necessary for a price ceiling to have an impact on a market? Describe at least three of the effects that a price ceiling can have on a market.

Accepted Answer