Question :
35) In the figure above, if the wage rate $6 : 1241587
35) In the figure above, if the wage rate is $6 per hour, then the
A) firms’ surplus is the area d + e + f.
B) workers’ surplus is the area a + b + c.
C) deadweight loss equals zero.
D) Only answers A and C are correct.
E) Answers A, B, and C are correct.
36) In the figure above, if the minimum wage rate is $8 per hour, then after taking account of resources lost in job search, the workers’ surplus is the area ________ and the firms’ surplus is the area ________.
A) e; c
B) d; b
C) a; f
D) f; a
E) a + b + c + d + e; f
37) In the figure above, if the minimum wage is $8 per hour, then
A) resources used in job-search activity increase compared to the situation before the minimum wage.
B) it is legal to hire workers for a wage below the minimum wage because otherwise unemployment would result.
C) the deadweight loss is minimized.
D) Both answers A and B are correct.
E) Both answers B and C are correct.
38) The above figure shows a labor market with a minimum wage of $8 an hour. How many people are employed when the minimum wage is in place?
A) 40,000
B) 60,000
C) 80,000
D) fewer than 40,000
E) more than 80,000
39) The above figure shows a labor market. Before the minimum wage of $8 an hour is imposed, employment equals ________ workers; after the minimum wage of $8 an hour is imposed, employment equals ________ workers.
A) 80,000; 40,000
B) 40,000; 80,000
C) 60,000; 40,000
D) 60,000; 80,000
E) 80,000; 60,000
40) The above figure shows a labor market with a minimum wage of $8 an hour. The value of the resources workers are willing to use in their job search equals the distance between point ________ and point ________.
A) a; d
B) a; b
C) b; c
D) a; c
E) c; d
41) The above figure shows a labor market with a minimum wage of $8 an hour. The deadweight loss equals the
A) area abc.
B) distance ab.
C) distance ad.
D) area bad.
E) area acd.
42) The above figure shows the market for finish carpenters in Bozeman. If there is a minimum wage set at $18, then there will be
A) unemployment of 200 workers.
B) a surplus of 200 workers.
C) unemployment of 400 workers.
D) a surplus of 400 workers.
E) no unemployment of workers and no surplus of workers.
43) The above figure shows the market for finish carpenters in Bozeman. If there is a minimum wage set at $18, what is true?
A) The lowest wage for which someone is willing to work is $18 an hour.
B) The quantity of jobs increases to 400.
C) The lowest wage for which someone is willing to work is $20 an hour.
D) 200 workers are employed.
E) The quantity of jobs demanded is more than the quantity supplied.
44) The above figure shows the market for finish carpenters in Bozeman. If there is a minimum wage set at $18, which of the following statements is true?
A) Firms’ surplus increases with the minimum wage.
B) Workers who retain their jobs have their wages rise.
C) The market is efficient.
D) The quantity supplied of workers is less that quantity demanded.
E) Unemployment decreases because firms employ their workers more carefully.
45) The above figure shows the market for finish carpenters in Bozeman. There is a minimum wage set at $18. Compared to the initial equilibrium without the minimum wage, once the minimum wage is in place, and after taking account of job search, the total workers’ surplus ________ and the total firms’ surplus ________.
A) decreases; increases
B) increases; increases
C) increases; decreases
D) does not change; increases
E) decreases; decreases
