Question : 41) The table above gives the labor market for a : 1228315

41) The table above gives the labor market for a small foreign economy. Equilibrium in the labor market occurs at a real wage rate of

A) $7.15 per hour.

B) $7.65 per hour.

C) $8.00 per hour.

D) $8.50 per hour.

E) $9.00 per hour.

42) The table above gives the labor market for a small foreign economy. A minimum wage law that sets the minimum wage at $8.50 per hour produces

A) equilibrium in the labor market.

B) a labor surplus of 25 million hours.

C) a labor shortage of 25 million hours.

D) a labor surplus of $0.50 per hour.

E) a labor surplus of 65 million hours.

43) The table above gives the labor market for a small foreign economy. A(n) ________ would create ________.

A) minimum wage of $5.00; an increase in job rationing.

B) union-negotiated wage of $7.50; unemployment and job rationing.

C) efficiency wage of $8.00; unemployment and job rationing.

D) efficiency wage of $9.00; an increase in job rationing.

E) minimum wage of $9.00; a decrease job search.

44) In the above figure, a minimum wage will not change the unemployment rate if it is set at

A) $6.00.

B) $9.00.

C) $12.00.

D) Both B and C are correct because any wage rate that exceeds $9 per hour has no effect on the unemployment rate.

E) None of the above because the minimum wage always affects the unemployment rate.

45) In the above figure, an ________ would be set ________ .

A) efficiency wage; above $9.00 and would increase the natural rate of unemployment

B) effective minimum wage; above $6.00.

C) union wage; above $9.00 but would not affect the natural rate of unemployment.

D) efficiency wage; above $6.00.

E) efficiency wage; below $9.00

46) It is estimated that, on the average and without taking account of skill differentials, union wages are

A) less than nonunion wages.

B) equal to nonunion wages.

C) 10 to 25 percent higher than nonunion wages.

D) 100 percent higher than nonunion wages.

E) 66 percent higher than nonunion wages.

47) The presence of union wages leads to

A) a fall in the real wage rate as fewer people are hired.

B) a fall in the real wage rate as more people are hired.

C) less job search as more workers are hired.

D) job rationing because the real wage exceeds the equilibrium real wage.

E) lower unemployment because workers do not want to lose the high union wage they are being paid.

48) The Fair Labor Standards Act originally set the minimum wage at

A) $1.25 in 1983.

B) $1.25 in 1938.

C) $0.25 in 1938.

D) $0.25 in 1983.

E) $3.00 in 1960.

49) The real minimum wage rate

A) has generally increased since 1967.

B) has generally decreased since 1967.

C) was at its highest level in 1995.

D) fell after 1967 until it reached a minimum around 1985 and has generally risen since then.

E) has stayed in the range between $6 and $5 (measured in 2005 dollars per hour) since 1967.

50) The two fundamental causes of unemployment at full employment are

A) seasonal jobs and technological change.

B) foreign competition and financial bankruptcies.

C) job search and job rationing.

D) decreases in labor productivity and more generous retirement benefits.

E) demographic change and decreases in the demand for labor.