Question 1

If the minimum wage law sets a wage floor below the equilibrium wage in the market for unskilled labor,then the

Accepted Answer

If the minimum wage is set below the equilibrium wage, it does not affect the market because employers are already paying a higher wage than the minimum. Therefore, the market remains unaffected.

Question 2

The number of unskilled workers employed before and after a change in the minimum wage is found to be the same.This means

Accepted Answer

The fact that the number of unskilled workers employed before and after a change in the minimum wage is the same does not provide conclusive evidence about the effects of the wage change on the labor market. It is possible that the minimum wage was already below the equilibrium wage for unskilled labor, in which case the wage change would have no impact on employment levels. Alternatively, the wage change may have affected the number of hours worked by each worker, which would have implications for overall labor market outcomes. Therefore, the best choice is either B or C.

Question 3

If the minimum wage law sets a price floor above the equilibrium wage in the market for unskilled labor,then the

Accepted Answer

When a minimum wage is set above the equilibrium wage, it results in a surplus of unskilled labor because the higher wage attracts more workers than employers are willing to hire at that wage, leading to unemployment among unskilled workers.

Question 4

Someone says,"Even though the equilibrium wage rate is $8 an hour in the unskilled labor market,if we impose a minimum wage of $10 an hour,no one currently working will lose his or her job." This person must believe that the

Accepted Answer

If the person believes that no one will lose their job even with a minimum wage above the equilibrium wage rate, it must be because they believe the demand for unskilled labor is completely fixed and not affected by changes in wage rates. This would make the demand curve for unskilled labor vertical.

Question 5

At the minimum wage (set above the equilibrium wage),

Accepted Answer

A minimum wage set above the equilibrium wage will result in a surplus of labor, meaning there will be more individuals looking for work than there are jobs available at that wage. This will lead to fewer people working, or fewer labor hours demanded, than at the equilibrium wage. Additionally, employers may choose to cut back on hours or lay off workers in order to avoid paying the higher wage, which could result in some workers losing their jobs or working fewer hours. Lastly, individuals who do end up working at the minimum wage will be paid more than they would have been at the equilibrium wage, but only if they are able to secure a job.

Question 6

-Refer to Exhibit 4-7.How many fewer persons work in the unskilled labor market at the minimum wage (W_M)than at the equilibrium wage (W₁)?

Accepted Answer

The answer of 
-Refer to Exhibit 4-7.How many fewer persons...

Question 7

If the relative price of one unit of good Y is 0.25 units of good Z,then it follows that the absolute price of good Z can be __________ and the absolute price of good Y can be __________.

Accepted Answer

The answer of If the relative price of one unit...

Question 8

-Refer to Exhibit 4-7.How many unskilled workers do firms want to employ at the minimum wage?

Accepted Answer

The answer of 
-Refer to Exhibit 4-7.How many unskilled workers...

Question 9

-Refer to Exhibit 4-6.Suppose the minimum wage is set at $5.The result will be

Accepted Answer

If the minimum wage is set at $5 and it is below the equilibrium wage, it will have no impact on the unskilled labor market.

Question 10

-Refer to Exhibit 4-7.The number of unskilled workers who want to work at the minimum wage is

Accepted Answer

The answer of 
-Refer to Exhibit 4-7.The number of unskilled...

Question 11

If the relative price of one unit of good X is 5 units of good Y,then it follows that the absolute price of good X can be __________ and the absolute price of good Y can be __________.

Accepted Answer

The answer of If the relative price of one unit...

Question 12

-Refer to Exhibit 4-6.At a wage of $7,there will be a __________ of unskilled workers equal to __________ thousand workers.

Accepted Answer

At a wage of $7, the quantity of unskilled workers supplied exceeds the quantity demanded, creating a surplus. The difference between the quantity supplied (40 thousand) and the quantity demanded (20 thousand) at this wage level is 20 thousand workers.

Question 13

-Refer to Exhibit 4-5.If a free market were allowed in the transplanted kidney market,then the equilibrium price would be P₂.The number of kidneys transplanted would increase by _________ compared to the number transplanted at a price ceiling of P= $0.

Accepted Answer

The increase in the number of kidneys transplanted would be the difference between the quantity supplied at the equilibrium price and the quantity supplied at a price ceiling of $0, which is represented by (Q₂ - Q₁).

Question 14

-Refer to Exhibit 4-6.Suppose the minimum wage is set at $7.The result will be

Accepted Answer

When the minimum wage is set above the equilibrium wage, it results in a surplus of labor, meaning there are more workers willing to work at that wage than there are jobs available, leading to unemployment among unskilled workers.

Question 15

If the minimum wage is set above the equilibrium wage,then

Accepted Answer

If the minimum wage is set above the equilibrium wage, this means that it is now higher than what the market would naturally determine as the wage rate. As a result, employers will demand fewer labor hours at the higher wage rate than they would at the equilibrium wage. This is because the increased cost of labor means that employers will have to pay more per hour of work, and may therefore choose to hire fewer workers or reduce the number of hours worked by their existing employees to keep costs down. The result is fewer labor hours purchased by employers than at the equilibrium wage.

Question 16

A shortage of kidneys (for transplants)results from

Accepted Answer

A shortage in the kidney market can occur if the legal price is set below the equilibrium price, which is effectively what happens when a price ceiling is imposed at $0, assuming the equilibrium price is greater than $0. This prevents the market from clearing, as the quantity demanded exceeds the quantity supplied at this artificially low price.

Question 17

If the absolute price of a computer is $600 and the relative price of a dining room table is 3 computers,it follows that the absolute price of a dining room table is

Accepted Answer

The absolute price of the dining room table is $1,800, calculated by multiplying the absolute price of one computer ($600) by the relative price of the dining room table (3 computers). None of the provided options matches this calculation.

Question 18

Which of the following statement is false based on information presented in the textbook?

Accepted Answer

The statement "In the market for transplanted kidneys the legal price is the same as the equilibrium price" is false. The legal price for transplanted kidneys is $0, meaning there is a price ceiling below the equilibrium price.

Question 19

A minimum wage law (that sets the minimum wage above the equilibrium wage)can be expected to

Accepted Answer

A minimum wage law that sets the minimum wage above the equilibrium wage will lead to an excess supply of unskilled labor. This means that there will be more workers willing to work at the minimum wage than there are jobs available. As a result, some workers will not be able to find employment or their hours may be reduced. Therefore, it will reduce the number of unskilled workers employed and/or reduce the number of hours worked by unskilled workers. The other choices are not likely outcomes of a minimum wage law.

Question 20

-Refer to Exhibit 4-5.Suppose the government imposes a price ceiling at P = $0 for transplanted kidneys.The result will be a

Accepted Answer

A price ceiling set at $0 for transplanted kidneys would result in a shortage because the quantity demanded would exceed the quantity supplied at that price.

Quiz 4: Prices: Free,controlled,and Relative

If the minimum wage law sets a wage floor below the equilibrium wage in the market for unskilled labor,then the

The number of unskilled workers employed before and after a change in the minimum wage is found to be the same.This means

If the minimum wage law sets a price floor above the equilibrium wage in the market for unskilled labor,then the

Someone says,"Even though the equilibrium wage rate is $8 an hour in the unskilled labor market,if we impose a minimum wage of $10 an hour,no one currently working will lose his or her job." This person must believe that the

At the minimum wage (set above the equilibrium wage) ,

-Refer to Exhibit 4-7.How many fewer persons work in the unskilled labor market at the minimum wage (W_M) than at the equilibrium wage (W₁) ?

If the relative price of one unit of good Y is 0.25 units of good Z,then it follows that the absolute price of good Z can be and the absolute price of good Y can be .

-Refer to Exhibit 4-7.How many unskilled workers do firms want to employ at the minimum wage?

-Refer to Exhibit 4-6.Suppose the minimum wage is set at $5.The result will be

-Refer to Exhibit 4-7.The number of unskilled workers who want to work at the minimum wage is

If the relative price of one unit of good X is 5 units of good Y,then it follows that the absolute price of good X can be and the absolute price of good Y can be .

-Refer to Exhibit 4-6.At a wage of $7,there will be a of unskilled workers equal to thousand workers.

-Refer to Exhibit 4-5.If a free market were allowed in the transplanted kidney market,then the equilibrium price would be P₂.The number of kidneys transplanted would increase by _________ compared to the number transplanted at a price ceiling of P= $0.

-Refer to Exhibit 4-6.Suppose the minimum wage is set at $7.The result will be

If the minimum wage is set above the equilibrium wage,then

A shortage of kidneys (for transplants) results from

If the absolute price of a computer is $600 and the relative price of a dining room table is 3 computers,it follows that the absolute price of a dining room table is

Which of the following statement is false based on information presented in the textbook?

A minimum wage law (that sets the minimum wage above the equilibrium wage) can be expected to

-Refer to Exhibit 4-5.Suppose the government imposes a price ceiling at P = $0 for transplanted kidneys.The result will be a

Quiz 4: Prices: Free,controlled,and Relative

If the minimum wage law sets a wage floor below the equilibrium wage in the market for unskilled labor,then the

The number of unskilled workers employed before and after a change in the minimum wage is found to be the same.This means

If the minimum wage law sets a price floor above the equilibrium wage in the market for unskilled labor,then the

Someone says,"Even though the equilibrium wage rate is $8 an hour in the unskilled labor market,if we impose a minimum wage of $10 an hour,no one currently working will lose his or her job." This person must believe that the

At the minimum wage (set above the equilibrium wage) ,

-Refer to Exhibit 4-7.How many fewer persons work in the unskilled labor market at the minimum wage (WM) than at the equilibrium wage (W1) ?

If the relative price of one unit of good Y is 0.25 units of good Z,then it follows that the absolute price of good Z can be __________ and the absolute price of good Y can be __________.

-Refer to Exhibit 4-7.How many unskilled workers do firms want to employ at the minimum wage?

-Refer to Exhibit 4-6.Suppose the minimum wage is set at $5.The result will be

-Refer to Exhibit 4-7.The number of unskilled workers who want to work at the minimum wage is

If the relative price of one unit of good X is 5 units of good Y,then it follows that the absolute price of good X can be __________ and the absolute price of good Y can be __________.

-Refer to Exhibit 4-6.At a wage of $7,there will be a __________ of unskilled workers equal to __________ thousand workers.

-Refer to Exhibit 4-5.If a free market were allowed in the transplanted kidney market,then the equilibrium price would be P2.The number of kidneys transplanted would increase by _________ compared to the number transplanted at a price ceiling of P= $0.

-Refer to Exhibit 4-6.Suppose the minimum wage is set at $7.The result will be

If the minimum wage is set above the equilibrium wage,then

A shortage of kidneys (for transplants) results from

If the absolute price of a computer is $600 and the relative price of a dining room table is 3 computers,it follows that the absolute price of a dining room table is

Which of the following statement is false based on information presented in the textbook?

A minimum wage law (that sets the minimum wage above the equilibrium wage) can be expected to

-Refer to Exhibit 4-5.Suppose the government imposes a price ceiling at P = $0 for transplanted kidneys.The result will be a

-Refer to Exhibit 4-7.How many fewer persons work in the unskilled labor market at the minimum wage (W_M) than at the equilibrium wage (W₁) ?

If the relative price of one unit of good Y is 0.25 units of good Z,then it follows that the absolute price of good Z can be and the absolute price of good Y can be .

If the relative price of one unit of good X is 5 units of good Y,then it follows that the absolute price of good X can be and the absolute price of good Y can be .

-Refer to Exhibit 4-6.At a wage of $7,there will be a of unskilled workers equal to thousand workers.

-Refer to Exhibit 4-5.If a free market were allowed in the transplanted kidney market,then the equilibrium price would be P₂.The number of kidneys transplanted would increase by _________ compared to the number transplanted at a price ceiling of P= $0.