Question : Table 4-4 Hourly Wage (dollars) Quantity of Labor Supplied : 1388178

 

Table 4-4

 

Hourly Wage

(dollars)

Quantity of Labor Supplied

Quantity of Labor Demanded

$8.00

350,000

390,000

  8.50

360,000

380,000

  9.00

370,000

370,000

  9.50

380,000

360,000

10.00

390,000

350,000

10.50

400,000

340,000

 

Table 4-4 shows the demand and supply schedules for the low-skilled labor market in the city of Westover.

 

 

11) Refer to Table 4-4.  If a minimum wage of $10.50 is mandated there will be a

A) shortage of 30,000 units of labor.

B) surplus of 30,000 units of labor.

C) shortage of 60,000 units of labor.

D) surplus of 60,000 units of labor.

 

12) Refer to Table 4-4. Suppose that the quantity of labor demanded increases by 40,000 at each wage level. What are the new free market equilibrium hourly wage and the new equilibrium quantity of labor?

A) W = $10.00; Q = 390,000

B) W = $9.50; Q = 380,000

C) W = $8.50; Q = 380,000

D) W = $8.00; Q = 390,000

 

 

13) Refer to Table 4-4. Suppose that the quantity of labor demanded decreases by 40,000 at each wage level. What are the new free market equilibrium hourly wage and the new equilibrium quantity of labor?

A) W = $10.00; Q = 390,000

B) W = $9.50; Q = 380,000

C) W = $8.50; Q = 340,000

D) W = $8.00; Q = 350,000

 

 

14) Refer to Table 4-4. Suppose that the quantity of labor supplied increases by 40,000 at each wage level. What are the new free market equilibrium hourly wage and the new equilibrium quantity of labor?

A) W = $9.00; Q = 410,000

B) W = $9.50; Q = 420,000

C) W = $8.50; Q = 400,000

D) W = $8.00; Q = 390,000

 

15) Refer to Table 4-4. Suppose that the quantity of labor supplied decreases by 40,000 at each wage level. What are the new free market equilibrium hourly wage and the new equilibrium quantity of labor?

A) W = $9.00; Q = 330,000

B) W = $9.50; Q = 370,000

C) W = $10.00; Q = 350,000

D) W = $8.00; Q = 390,000

 

 

16) Which of the following is a consequence of minimum wage laws?

A) Low skilled workers benefit because minimum wage increases the number of jobs providing low skilled workers with training.

B) Employers will be reluctant to offer low-skill workers jobs with training.

C) Producers have an incentive to offer workers non-wage benefits such as health care benefits and convenient working hours rather than a higher wage.

D) All workers benefit when the minimum wage is increased.

 

 

17) The minimum wage is an example of

A) a subsidy for low-skilled workers.

B) a price floor.

C) a price ceiling.

D) a black market.

 

 

18) To affect the market outcome, a price floor

A) must be set above the black market price.

B) must be set above the legal price.

C) must be set above the price ceiling.

D) must be set above the equilibrium price.

 

19) Government intervention in agricultural markets in the U.S. began

A) during World War II to ensure that enough food was available for domestic consumption.

B) after World War I in order to assist farmers to adjust from a war-time economy to a peace-time economy.

C) during the Great Depression.

D) during the Korean War.

 

 

20) A black market is a market where buying and selling take place

A) at prices that violate government price regulations.

B) in non-licensed shops and warehouses.

C) after regular office hours.

D) on foreign soil.