Question 1

Figure 28-3  &#10;Refer to Figure 28-3.If the government imposes a minimum wage of $8,then how many workers will be unemployed?&#10;A)0&#10;B)3,000&#10;C)4,000&#10;D)7,000

Accepted Answer

In the graph, the intersection of the supply and demand curves shows the equilibrium wage rate and employment level, which is $6 per hour and 12,000 workers in this case. If the government imposes a minimum wage of $8, the labor demand curve shifts to the left from D1 to D2, since firms now hire fewer workers at a higher wage rate. Meanwhile, the labor supply curve shifts to the right from S1 to S2 since more workers are willing to work at a higher wage. The new intersection of D2 and S2 shows a wage rate of $8 per hour and an employment level of 8,000 workers. Therefore, the difference between the supply and demand of labor is (12,000 - 8,000) = 4,000 workers who will be unemployed and unable to find jobs in this scenario.

Question 2

Minimum-wage laws&#10;A)create unemployment.&#10;B)do not apply in states with right-to-work laws.&#10;C)affect highly-educated workers more than high school dropouts.&#10;D)cause labor shortages,which further raise wages above equilibrium.

Accepted Answer

Minimum-wage laws set a price floor on wages, which means employers have to pay their workers at least a certain amount. This creates a situation where some workers become more expensive to hire than they are worth to the employer, leading to unemployment or reduced hours for those workers.

Question 3

Minimum wages create unemployment in markets where they create a&#10;A)shortage of labor.Unemployment of this type is called frictional.&#10;B)shortage of labor.Unemployment of this type is called structural.&#10;C)surplus of labor.Unemployment of this type is called frictional.&#10;D)surplus of labor.Unemployment of this type is called structural.

Accepted Answer

Minimum wages create a surplus of labor, meaning that there are more people willing to work at the minimum wage than there are available jobs. This type of unemployment is called structural, as it is caused by a fundamental mismatch between the skills and qualifications of available workers and the demands of the labor market. Frictional unemployment occurs when workers are between jobs or otherwise transitioning in the labor market, and is not caused by minimum wages.

Question 4

If the minimum wage were currently above the equilibrium wage,then a decrease in the minimum wage that kept it above the equilibrium wage would&#10;A)increase the surplus of labor.&#10;B)reduce the surplus of labor.&#10;C)increase the shortage of labor.&#10;D)reduce the shortage of labor,

Accepted Answer

If the minimum wage is above the equilibrium wage, then there is a surplus of labor, which means that there are more workers willing to work at that wage rate than there are jobs available. In such a situation, reducing the minimum wage while keeping it above the equilibrium wage would decrease the surplus of labor as more employers would demand labor at the lower wage rate, and some of the workers who were previously unemployed would now find jobs. However, if the minimum wage were reduced below the equilibrium wage, it would increase the surplus of labor as more workers would be willing to work at the lower wage rate, but fewer employers would demand labor at that wage rate.

Question 5

An increase in the minimum wage&#10;A)increases both the quantity demanded and the quantity supplied of labor.&#10;B)decreases both the quantity demanded and the quantity supplied of labor.&#10;C)increases the quantity of labor demanded but decreases the quantity of labor supplied.&#10;D)decreases the quantity of labor demanded but increases the quantity of labor supplied.

Accepted Answer

When the minimum wage is increased, the cost of hiring workers rises and firms tend to reduce the quantity of labor demanded. However, at the same time, the higher wage rate encourages more people to offer their labor in the market (i.e., increase in the quantity supplied of labor). As a result, the quantity of labor supplied increases, while the quantity of labor demanded decreases, leading to a surplus of labor or unemployment.

Question 6

Minimum-wage laws can keep wages&#10;A)above equilibrium and cause a surplus of labor.&#10;B)above equilibrium and cause a shortage of labor.&#10;C)below equilibrium and cause a surplus of labor.&#10;D)below equilibrium and cause a shortage of labor.

Accepted Answer

Minimum-wage laws set a floor on wages, which can keep wages above the equilibrium level, leading to a surplus of labor, as more workers are willing to work at the higher wage than there are jobs available.

Question 7

If the minimum wage is currently above the equilibrium wage,then a decrease in the minimum wage&#10;A)increases both the quantity demanded and the quantity supplied of labor.&#10;B)decreases both the quantity demanded and the quantity supplied of labor.&#10;C)increases the quantity of labor demanded but decreases the quantity of labor supplied.&#10;D)decreases the quantity of labor demanded but increases the quantity of labor supplied.

Accepted Answer

When the minimum wage is above the equilibrium wage, it creates a surplus of labor (unemployment). A decrease in the minimum wage moves it closer to the equilibrium, increasing the quantity of labor demanded (as employers are willing to hire more at lower wages) and decreasing the quantity of labor supplied (as fewer workers are willing to work at lower wages).

Question 8

Figure 28-3  &#10;Refer to Figure 28-3.At the equilibrium wage,how many workers are unemployed?&#10;A)0&#10;B)4,000&#10;C)5,000&#10;D)8,000

Accepted Answer

At the equilibrium wage, the quantity of labor supplied equals the quantity of labor demanded, meaning there is no unemployment.

Question 9

When a minimum-wage law forces the wage to remain above the equilibrium level,it&#10;A)raises both the quantity of labor supplied and the quantity of labor demanded compared to the equilibrium level.&#10;B)raises the quantity of labor supplied and reduces the quantity of labor demanded compared to the equilibrium level.&#10;C)reduces the quantity of labor supplied and raises the quantity of labor demanded compared to the equilibrium level.&#10;D)reduces both the quantity of labor supplied and the quantity of labor demanded compared to the equilibrium level.

Accepted Answer

When the minimum wage is set above the equilibrium wage, it creates a surplus of labor, which means that the quantity of labor supplied increases while the quantity of labor demanded decreases. This is because employers are less willing to hire as many workers at the higher wage, while more individuals are willing to work at the higher wage. Therefore, option B is the correct answer.

Question 10

Figure 28-3  &#10;Refer to Figure 28-3.If the government imposes a minimum wage of $8,then how many workers will be employed?&#10;A)3,000&#10;B)4,000&#10;C)5,000&#10;D)7,000

Accepted Answer

The minimum wage of $8 likely creates a surplus of labor, meaning fewer workers are employed than at equilibrium. The figure likely shows that at $8, 3,000 workers are employed.

Question 11

Which of the following is not correct?&#10;A)Frictional unemployment results from the process of matching workers and jobs.&#10;B)Structural unemployment results when the number of jobs is insufficient for the number of workers.&#10;C)Minimum wages are the predominant reason for unemployment in the U.S.economy.&#10;D)When a minimum-wage law forces the wage to remain above the level that balances supply and demand,it raises the quantity of labor supplied and reduces the quantity of labor demanded compared to the equilibrium level.

Accepted Answer

The answer of Which of the following is not correct?&#10;A)Frictional...

Question 12

An increase in the minimum wage&#10;A)reduces structural unemployment.&#10;B)reduces frictional unemployment,&#10;C)increases structural unemployment.&#10;D)increases frictional unemployment.

Accepted Answer

The answer of An increase in the minimum wage&#10;A)reduces structural...

Question 13

Figure 28-3  &#10;Refer to Figure 28-3.If the government imposes a minimum wage of $4,how many workers will be employed?&#10;A)3,000&#10;B)4,000&#10;C)5,000&#10;D)7,000

Accepted Answer

The answer of Figure 28-3  &#10;Refer to Figure 28-3.If...

Question 14

Figure 28-3  &#10;Refer to Figure 28-3.If the government imposes a minimum wage of $4,how many workers will be unemployed?&#10;A)0&#10;B)3,000&#10;C)4,000&#10;D)7,000

Accepted Answer

The answer of Figure 28-3  &#10;Refer to Figure 28-3.If...

Question 15

Minimum-wage laws&#10;A)reduce unemployment.&#10;B)cause labor shortages,which further raise wages above equilibrium.&#10;C)affect highly-educated workers more than high school dropouts.&#10;D)None of the above is correct.

Accepted Answer

The answer of Minimum-wage laws&#10;A)reduce unemployment.&#10;B)cause labor shortages,which further raise...

Question 16

Figure 28-3  &#10;Refer to Figure 28-3.If the government imposes a minimum wage of $4,then unemployment will increase by&#10;A)0 workers.&#10;B)2,000 workers.&#10;C)4,000 workers.&#10;D)5,000 workers.

Accepted Answer

The answer of Figure 28-3  &#10;Refer to Figure 28-3.If...

Question 17

Minimum wages create unemployment in markets where they create a&#10;A)shortage of labor.Minimum wage laws are not the predominant reason for unemployment in the U.S.&#10;B)shortage of labor.Minimum wage laws are the predominant reason for unemployment in the U.S.&#10;C)surplus of labor.Minimum wage laws are not the predominant reason for unemployment in the U.S.&#10;D)surplus of labor.Minimum wage laws are the predominant reason for unemployment in the U.S.

Accepted Answer

The answer of Minimum wages create unemployment in markets where...

Question 18

When a minimum-wage law forces the wage to remain above the equilibrium level,the result is&#10;A)both a shortage of labor and a shortage of jobs.&#10;B)a shortage of labor and a surplus of jobs.&#10;C)a surplus of labor and a shortage of jobs.&#10;D)both surplus of labor and a surplus of jobs.

Accepted Answer

The answer of When a minimum-wage law forces the wage...

Question 19

Figure 28-3  &#10;Refer to Figure 28-3.If the government imposes a minimum wage of $4,then employment will decrease by&#10;A)0 workers.&#10;B)2,000 workers.&#10;C)3,000 workers.&#10;D)4,000 workers.

Accepted Answer

The answer of Figure 28-3  &#10;Refer to Figure 28-3.If...

Question 20

Figure 28-3  &#10;Refer to Figure 28-3.At the equilibrium wage,how many workers are employed?&#10;A)0&#10;B)1,000&#10;C)5,000&#10;D)9,000

Accepted Answer

The answer of Figure 28-3  &#10;Refer to Figure 28-3.At...

Question 21

Minimum-wage laws are least likely to affect the wages paid to&#10;A)teenagers.&#10;B)low-skill workers.&#10;C)inexperienced workers.&#10;D)highly-educated workers.

Accepted Answer

The answer of Minimum-wage laws are least likely to affect...

Question 22

Figure 28-3  &#10;Refer to Figure 28-3.If unemployment is 2,000 workers,then the minimum wage must be&#10;A)$4.&#10;B)$5.&#10;C)$7.&#10;D)$8.

Accepted Answer

The answer of Figure 28-3  &#10;Refer to Figure 28-3.If...

Question 23

Figure 28-4&#10;&#8203;  &#10;Refer to Figure 28-4.If 12,000 workers are unemployed,then the minimum wage must be&#10;A)$4.&#10;B)$6.&#10;C)$14&#10;D)$16.

Accepted Answer

The answer of Figure 28-4&#10;&#8203;  &#10;Refer to Figure 28-4.If...

Question 24

Figure 28-4&#10;&#8203;  &#10;Refer to Figure 28-4.If the government imposes a minimum wage of $16,how many workers will be unemployed?&#10;A)0&#10;B)4,000&#10;C)8,000&#10;D)12,000

Accepted Answer

The answer of Figure 28-4&#10;&#8203;  &#10;Refer to Figure 28-4.If...

Question 25

Figure 28-4&#10;&#8203;  &#10;Refer to Figure 28-4.If the government imposes a minimum wage of $6,how many workers will be unemployed?&#10;A)0&#10;B)4,000&#10;C)8,000&#10;D)12,000

Accepted Answer

The answer of Figure 28-4&#10;&#8203;  &#10;Refer to Figure 28-4.If...

Question 26

Figure 28-4&#10;&#8203;  &#10;Refer to Figure 28-4.If the government imposes a minimum wage of $10,how many workers will be unemployed?&#10;A)0&#10;B)2,000&#10;C)4,000&#10;D)8,000

Accepted Answer

The answer of Figure 28-4&#10;&#8203;  &#10;Refer to Figure 28-4.If...

Question 27

Wages in excess of their equilibrium level help explain&#10;A)frictional but not structural unemployment.&#10;B)structural but not frictional unemployment.&#10;C)both frictional and structural unemployment.&#10;D)neither frictional nor structural unemployment.

Accepted Answer

The answer of Wages in excess of their equilibrium level...

Question 28

Figure 28-4&#10;&#8203;  &#10;Refer to Figure 28-4.If the government imposes a minimum wage of $8,how many workers will be unemployed?&#10;A)0&#10;B)2,000&#10;C)4,000&#10;D)8,000

Accepted Answer

The answer of Figure 28-4&#10;&#8203;  &#10;Refer to Figure 28-4.If...

Question 29

Workers waiting for jobs to open up is most closely associated with&#10;A)cyclical unemployment.&#10;B)frictional unemployment.&#10;C)seasonal unemployment.&#10;D)structural unemployment.

Accepted Answer

The answer of Workers waiting for jobs to open up...

Question 30

Figure 28-4&#10;&#8203;  &#10;Refer to Figure 28-4.If the government imposes a minimum wage of $12,how many workers will be unemployed?&#10;A)0&#10;B)2,000&#10;C)4,000&#10;D)10,000

Accepted Answer

The answer of Figure 28-4&#10;&#8203;  &#10;Refer to Figure 28-4.If...

Question 31

Figure 28-3  &#10;Refer to Figure 28-3.If the government imposes a minimum wage of $8,then employment will decrease by&#10;A)0 workers.&#10;B)2,000 workers.&#10;C)3,000 workers.&#10;D)4,000 workers.

Accepted Answer

The answer of Figure 28-3  &#10;Refer to Figure 28-3.If...

Question 32

Workers searching for jobs that best suit them is most closely associated with&#10;A)cyclical unemployment.&#10;B)frictional unemployment.&#10;C)seasonal unemployment.&#10;D)structural unemployment.

Accepted Answer

The answer of Workers searching for jobs that best suit...

Question 33

Minimum-wage laws are most likely to affect the wages paid to&#10;A)teenagers.&#10;B)people with advanced technical training.&#10;C)people who are self-employed.&#10;D)union members.

Accepted Answer

The answer of Minimum-wage laws are most likely to affect...

Question 34

Figure 28-4&#10;&#8203;  &#10;Refer to Figure 28-4.If 4,000 workers are unemployed,then the minimum wage must be&#10;A)$6&#10;B)$8.&#10;C)$12.&#10;D)$14.

Accepted Answer

The answer of Figure 28-4&#10;&#8203;  &#10;Refer to Figure 28-4.If...

Question 35

Figure 28-3  &#10;Refer to Figure 28-3.If the government imposes a minimum wage of $8,then unemployment will increase by&#10;A)0 workers.&#10;B)2,000 workers.&#10;C)4,000 workers.&#10;D)7,000 workers.

Accepted Answer

The answer of Figure 28-3  &#10;Refer to Figure 28-3.If...

Question 36

Figure 28-5  &#10;Refer to Figure 28-5.If the minimum wage is set at $125,then&#10;A)the quantity of labor demanded will equal 20.&#10;B)the quantity of labor supplied will equal 35.&#10;C)the surplus of labor will equal 25.&#10;D)unemployment will equal 10.

Accepted Answer

The answer of Figure 28-5  &#10;Refer to Figure 28-5.If...

Question 37

Figure 28-4&#10;&#8203;  &#10;Refer to Figure 28-4.If the government imposes a minimum wage of $4,how many workers will be unemployed?&#10;A)0&#10;B)4,000&#10;C)6,000&#10;D)12,000

Accepted Answer

The answer of Figure 28-4&#10;&#8203;  &#10;Refer to Figure 28-4.If...

Question 38

Figure 28-4&#10;&#8203;  &#10;Refer to Figure 28-4.If 8,000 workers are unemployed,then the minimum wage must be&#10;A)$6&#10;B)$8&#10;C)$12.&#10;D)$14.

Accepted Answer

The answer of Figure 28-4&#10;&#8203;  &#10;Refer to Figure 28-4.If...

Question 39

If the wage is kept above the equilibrium wage for any reason,the result is&#10;A)cyclical unemployment.&#10;B)frictional unemployment.&#10;C)seasonal unemployment.&#10;D)structural unemployment.

Accepted Answer

The answer of If the wage is kept above the...

Deck 28: 3: Sec 283 Mc Minimum-Wage Laws