Question

Question 40

1. Liberalism is the political philosophy espoused by

   	a.	Robert Nozick.
   	b.	John Rawls.
   	c.	John Stuart Mill.
   	d.	Jeremy Bentham.

Question 41

1. A binding minimum wage

   	a.	affects employees but not employers.
   	b.	lowers the productivity of workers.
   	c.	raises the cost of labor to firms.
   	d.	All of the above are correct.

Question 42

1. Economists who support minimum-wage legislation are likely to believe that the

   	a.	supply of unskilled labor is relatively inelastic.
   	b.	demand for unskilled labor is relatively inelastic.
   	c.	supply of unskilled labor is relatively elastic.
   	d.	demand for unskilled labor is relatively elastic.

Answer 1

40. B
(Rawls espoused liberalism.)

41. C
(Due to minimum wage, firm pays higher wages so the cost of labor to firms increases.)

42. B
(As demand would be relatively inelastic, so minimum wage would not affect the demand for workers and thus economists support minimum wage legislation.)