Question : 11) Why do some workers lose their job when the : 1241585

 

11) Why do some workers lose their job when the minimum wage is increased?

A) The increase in labor costs decreases the supply of the product, thereby raising the price of the good so that the equilibrium quantity decreases to zero.

B) The increase in the minimum wage decreases the quantity of labor demanded.

C) The demand for labor is perfectly inelastic.

D) The supply of labor decreases.

E) The demand for labor is perfectly elastic.

12) A minimum wage increases unemployment by

A) increasing the quantity of labor demanded.

B) decreasing the quantity of labor demanded.

C) shifting only the labor supply curve rightward.

D) shifting only the labor demand curve leftward.

E) shifting the labor supply curve rightward and shifting the labor demand curve leftward.

 

13) Suppose the current equilibrium wage rate for housekeepers is $8.60 per hour. An increase in the minimum wage to $7.50 per hour leads to

A) a surplus of housekeepers.

B) a shortage of housekeepers.

C) no change in the market for housekeepers.

D) an increase in the quantity of housekeepers supplied.

E) unemployment of housekeepers.

 

14) Suppose the equilibrium wage rate for apricot pickers is $7.00 per hour and at that wage rate the equilibrium quantity of apricot pickers employed is 14,000. If the minimum wage is set at $7.50 per hour, then the

A) quantity of apricot pickers employed increases.

B) quantity of apricot pickers employed decreases.

C) quantity of apricot pickers employed does not change.

D) wage rate for apricot pickers decreases.

E) quantity of apricot pickers demanded does not change, and the quantity of apricot pickers supplied does not change.

15) Suppose the current equilibrium wage rate for landscapers is $6.65 in Little Rock; $7.50 in St. Louis and $9.05 in Raleigh. An increase in the minimum wage to $7.50 per hour results in unemployment of landscapers in

A) Little Rock and St. Louis.

B) only Raleigh.

C) Little Rock, St. Louis, and Raleigh.

D) only Little Rock.

E) St. Louis and Raleigh.

 

16) Suppose the equilibrium wage rate for apricot pickers is $9.00 per hour in California and at that wage rate the equilibrium quantity of apricot pickers is 14,000. If the minimum wage is set at $7.50 per hour, then the

A) quantity of apricot pickers employed increases.

B) quantity of apricot pickers employed decreases.

C) quantity of apricot pickers employed does not change.

D) wage rate for apricot pickers increases.

E) some apricot pickers are unemployed.

 

 

 

17) The labor demand and labor supply schedules are given in the table above. If a minimum wage of $11 per hour is imposed,

A) a surplus of 300 workers occurs.

B) there is no shortage or surplus of workers.

C) 900 workers are employed.

D) Both answers B and C are correct.

E) Both answers A and C are correct.

18) The labor demand and labor supply schedules are given in the table above. If a minimum wage of $9 per hour is imposed,

A) a surplus of 300 workers occurs.

B) a shortage of 300 workers occurs.

C) there is no surplus or shortage of workers.

D) the quantity demanded is 1,000 workers.

E) there is unemployment of 700 workers.

 

19) The figure above shows the labor market in a region. For a minimum wage to change the wage rate and amount of employment, it must be

A) left to the forces of supply and demand.

B) set above $6 an hour.

C) set equal to $6 an hour.

D) set below $6 an hour.

E) set at $12 per hour.

20) The figure above shows the labor market in a region. If a minimum wage of $8 an hour is imposed, then there are ________ unemployed workers.

A) 20,000

B) 40,000

C) 60,000

D) 80,000

E) zero

 

21) The figure above shows the labor market in a region. If a minimum wage of $8 an hour is imposed, then the quantity of labor supplied is ________ and the quantity of labor demanded is ________.

A) 60,000; 60,000

B) 80,000; 40,000

C) 40,000; 60,000

D) 60,000; 40,000

E) 40,000; 40,000

 

22) The figure above shows the labor market in a region. In which of the following cases would the amount of unemployment be the largest?

A) when the market is at its equilibrium, with no minimum wage

B) when a minimum wage of $4 an hour is imposed

C) when a minimum wage of $6 an hour is imposed

D) when a minimum wage of $8 an hour is imposed

E) None of the above because the market will adjust so that there is no unemployment.