Question
Answer true or False and explain. With an exception of questions 1, the answer to all other questions (2-10) should be based on the graphical
Answer "true" or "False" and explain. With an exception of questions 1, the answer to all other questions (2-10) should be based on the graphical analysis (supply and demand diagrams).
1- A heroin addict is not rational because the consumption of heroin harms the user.
2- When unions play a decisive role in the labor market, the dead-weight loss of payroll tax is high, and the revenue generated by the tax is small.
3- A good time to increase the federal minimum wage is when the economy is going into recession.
4- Technological innovation benefits society because it increases the total revenue of the producers.
5- Poor countries in Africa do not benefit from trade with more advanced nations because they do not have the technological capabilities of large multinational corporations.
6- US government's tariffs on Chinese exports to the US benefit US consumers.
7- Minimum wage is not an acceptable policy because it causes unemployment.
8- Reducing payroll tax benefits workers and employers equally.
9- If there are only a few large employers in the labor market, the minimum wage can reduce unemployment and make the labor market more efficient.
10- Free trade with China hurts the US economy because Chinese workers are willing to work at lower wages compared with US workers.
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