Question :
61) A price floor a price
A) below which a seller : 1226534
61) A price floor is a price
A) below which a seller cannot legally sell.
B) above which a seller cannot legally sell.
C) that creates a shortage of the good if it is set above the equilibrium price.
D) Both answers A and C are correct.
E) Both answers B and C are correct.
62) The graph shows the labor market for painters. The lower the wage rate, the ________ is the quantity of painters that firms demand and the ________ is the quantity of painters that households are willing to supply.
A) greater; smaller
B) greater; greater
C) smaller; greater
D) smaller; smaller
E) None of the above answers is correct because both the demand and supply curves will shift in response to the change in the wage rate.
63) To be effective in raising people’s wages, a minimum wage must be set
A) above the equilibrium wage rate.
B) below the equilibrium wage rate.
C) equal to the equilibrium wage rate.
D) below $7.
E) either above or below the equilibrium wage depending on whether the supply curve of labor shifts rightward or leftward in response to the minimum wage.
64) A minimum wage set above the equilibrium wage rate
A) increases the quantity of labor services supplied.
B) decreases the quantity of labor services supplied.
C) has no effect on the quantity of labor services supplied.
D) shifts the labor supply curve rightward.
E) shifts the labor supply curve leftward.
65) A minimum wage set above the equilibrium wage will ________ the quantity of labor demanded and ________ the quantity of labor supplied.
A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease
E) not change; not change
66) Suppose the current equilibrium wage rate for lifeguards in Houston is $7.85 an hour. A minimum wage law that creates a price floor of $8.50 an hour leads to
A) a surplus of lifeguards in Houston.
B) a shortage of lifeguards in Houston.
C) no changes in the lifeguard market.
D) a change in the quantity of lifeguards supplied but no change in the quantity of lifeguards demanded.
E) an increase in the number of lifeguards employed.
67) The graph shows the labor market for teenagers in Atlanta. If the government sets a minimum wage of $6 an hour, the number of teenagers employed is ________.
A) 7,000
B) 5,000
C) 4,000
D) 3,000
E) less than 3,000
68) If the minimum wage is above the equilibrium wage rate, then an increase in the minimum wage ________ employment and ________ unemployment.
A) increases; increases
B) increases; decreases
C) decreases; increases
D) decreases; decreases
E) does not change; increases
69) The graph shows the labor market for apple pickers in Ohio. If the government sets a minimum wage of $5 an hour, ________ apple pickers are unemployed.
A) 6,000
B) 8,000
C) 10,000
D) 14,000
E) more than 14,000
70) If a minimum wage is introduced that is above the equilibrium wage rate,
A) the quantity of labor demanded increases.
B) job search activity increases.
C) the supply of labor increases and the supply of labor curve shifts rightward.
D) unemployment decreases because more workers accept jobs at the higher minimum wage rate.
E) the quantity of labor supplied decreases because of the increase in unemployment.
71) The graph shows the labor market for teenagers in Atlanta. If the government sets a minimum wage of $6 an hour, then the maximum amount that a teenager would be willing to spend on job search is ________ an hour.
A) $2
B) $4
C) $5
D) $6
E) $3
72) The minimum wage is set above the equilibrium wage rate. Does the minimum wage create inefficiency?
A) Yes
B) No
C) Only if the supply of labor is perfectly inelastic
D) Only if the supply of labor is perfectly elastic
E) Only if employment exceeds the efficient amount
73) A minimum wage set above the equilibrium wage rate creates
A) efficiency because it increases most workers’ wages.
B) efficiency because few workers lose their jobs.
C) efficiency because workers can earn a living wage.
D) inefficiency and a deadweight loss.
E) inefficiency because it creates excessive employment.
74) The graph shows the labor market for fast-food workers in Sioux City. If the government sets a minimum wage of $7 an hour, then the labor market is ________ and marginal benefit ________ marginal cost.
A) inefficient; is less than
B) inefficient; equals
C) efficient; equals
D) inefficient; is greater than
E) inefficient; cannot be compared to
75) When the minimum wage is raised, the ________ union labor ________.
A) demand for; increases
B) demand for; decreases
C) supply of; increases
D) supply of; decreases
E) demand for; does not change
