Microeconomics (7th Edition)
7th Edition
ISBN: 9780134737508
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Chapter 1, Problem 2TC
To determine
Categorize the statement whether it is normative or positive.
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18. Normative and positive statements
The following table contains statements that provide some analysis of policies that address the minimum wage.
Categorize each of these statements as either positive or normative.
Statement
Positive
Normative
All Americans should earn more than $25,000 per year.
Raising the minimum wage increases the rate of unemployment.
The minimum wage should be raised to $15 per hour.
Raising the minimum wage reduces the number of employment opportunities for low skilled workers.
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In the labor market, workers would like to receive higher wages and firms would like to pay lower wages.
Suppose that workers succeed in having a minimum wage established above the equilibrium wage. What will happen to the number of workers employed when compared to the original equilibrium? Explain
Suppose that firms succeed in having a maximum wage establish below the equilibrium wage. What will happen to the number of workers employed compared to the original equilibrium? Explain.
What wage maximizes the number of workers employed?Why?
How can a price ceiling make consumers better off? Under what conditions might it make them worse off?
Monopolistic competition combines the strengthen of both perfect competition and monopoly;it is the most ideal market structures of all three? Do you agree?
Explain how diminishing returns and economies of scale affect production costs.Large scale organizational are definitely more efficient than small firms and hence there should be…
Suppose Teresa earns $875 per week working as a corporate attorney for Rowan and Martin Associates. She uses $9 to order a mojito cocktail at Little
Havana. Little Havana pays Sam $350 per week to wait tables. Sam uses $200 to purchase legal service from Rowan and Martin Associates.
Identify whether each of the following events in this scenario occurs in the factor market or the product market.
Event
Factor Market
Product Market
Sam spends $200 to purchase legal service from Rowan and Martin Associates.
Teresa earns $875 per week working for Rowan and Martin Associates.
Teresa spends $9 to order a mojito cocktail.
Which of the elements of this scenario represent a flow from a firm to a household? This could be a flow of dollars, inputs, or outputs. Check all that
аpply.
O Teresa's labor
O The $350 per week Sam earns working for Little Havana
O The mojito Teresa receives
O The $200 Sam spends to purchase legal service from Rowan and Martin Associates
Chapter 1 Solutions
Microeconomics (7th Edition)
Ch. 1.A - Prob. 1PACh. 1.A - Prob. 2PACh. 1.A - Prob. 3PACh. 1.A - Prob. 4PACh. 1.A - Prob. 5PACh. 1.A - What is the area of the triangle shown in the...Ch. 1.A - Prob. 7PACh. 1 - Prob. 1TCCh. 1 - Prob. 2TCCh. 1 - Prob. 1.1.1RQ
Ch. 1 - Prob. 1.1.2RQCh. 1 - Prob. 1.1.3PACh. 1 - Prob. 1.1.4PACh. 1 - Prob. 1.1.5PACh. 1 - Prob. 1.1.6PACh. 1 - Prob. 1.1.7PACh. 1 - Prob. 1.1.8PACh. 1 - Prob. 1.1.9PACh. 1 - Prob. 1.1.10PACh. 1 - Prob. 1.1.11PACh. 1 - Prob. 1.2.1RQCh. 1 - Prob. 1.2.2RQCh. 1 - Prob. 1.2.3RQCh. 1 - Prob. 1.2.4RQCh. 1 - Prob. 1.2.5PACh. 1 - Prob. 1.2.6PACh. 1 - Prob. 1.2.7PACh. 1 - Prob. 1.2.8PACh. 1 - Prob. 1.2.9PACh. 1 - Prob. 1.2.10PACh. 1 - Prob. 1.2.11PACh. 1 - Prob. 1.2.12PACh. 1 - Prob. 1.2.13PACh. 1 - Prob. 1.3.1RQCh. 1 - Prob. 1.3.2RQCh. 1 - Prob. 1.3.3RQCh. 1 - Prob. 1.3.4PACh. 1 - Prob. 1.3.5PACh. 1 - Prob. 1.3.6PACh. 1 - Prob. 1.3.7PACh. 1 - Prob. 1.3.8PACh. 1 - Prob. 1.3.9PACh. 1 - Prob. 1.3.10PACh. 1 - Prob. 1.3.11PACh. 1 - Prob. 1.4.1RQCh. 1 - Prob. 1.4.2RQCh. 1 - Prob. 1.4.3PACh. 1 - Prob. 1.4.4PACh. 1 - Prob. 1.1CTECh. 1 - Prob. 1.2CTE
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