A country has passed a law setting a minimum wage for factory workers 5% below the equilibrium price. How will this law impact the labor market? A.) The law will likely cause a shortage of labor.
B.) The law will likely increase unemployment.
C.) The law will have no impact on the market.
D) The law will increase prices without affecting quantity.

Which of the following best describes the economic effect that results when the government increases interest rates and restricts the lending of money? a. borrowing money becomes more expensive and there is less investment in production. b. the economy grows as investments result in larger profits. c. government spending drives up prices because of greater competition for goods and services. d. consumers save more money and spend less buying goods and services.

In a chapter 7 bankruptcy, a debtor:

Security a has a higher standard deviation of returns than security b. we would expect that: (i) security a would have a risk premium equal to security b. (ii) the likely range of returns for security a in any given year would be higher than the likely range of returns for security b. (iii) the sharpe ratio of a will be higher than the sharpe ratio of b. (a) i only (b) i and ii only (c) ii and iii only (d) i, ii and iii