Question : 31) A minimum wage that above the equilibrium wage rate A) : 1239126

31) A minimum wage that is above the equilibrium wage rate

A) increases efficiency within the labor market.

B) increases the quantity of labor demanded.

C) creates a deadweight loss.

D) has no effect on the labor market because it is set above the equilibrium wage rate.

E) None of the above answers is correct.

32) A minimum wage

A) increases all workers’ surplus because the wage rate increases.

B) increases consumer surplus because the price of the good decreases.

C) decreases the firms’ surplus because fewer workers are hired at the higher wage.

D) increases the firms’ surplus and the workers’ surplus because it increases the efficiency of the labor market.

E) None of the above answers is correct.

33) Who loses and who gains from the minimum wage?

A) Losers are all workers and gainers are all firms.

B) Losers are all firms and gainers are all workers.

C) Losers are all firms and some workers, while gainers are other workers.

D) Gainers are some firms and all workers, while losers are some firms.

E) Gainers are some firms and some workers, while losers are other firms and other workers.

34) The people who immediately benefit from a minimum wage are

A) employers who now pay the minimum wage.

B) those people who enter the labor force to search for minimum wage jobs.

C) the workers who retain their jobs after enactment of the minimum wage.

D) everyone, both demanders and suppliers, because the minimum wage benefits everyone.

E) all workers.

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