Question :
51) Consider a wage-setting union in an otherwise competitive labour : 1384289
51) Consider a wage-setting union in an otherwise competitive labour market. If the union sets a wage above the competitive level, the effect will be
A) to raise wages for all workers who wish to work in the industry.
B) to increase the amount of employment in the industry.
C) to create a group of workers who would like to obtain jobs in the industry but cannot do so.
D) a level of employment which is the same as that at the competitive equilibrium wage.
E) to cause the labour supply curve to shift to the right.
52) Refer to Figure 14-2. Suppose the labour market is perfectly competitive. If a minimum wage of W5 were then established, the predicted effect would be which one of the following?
A) Q2 workers would be employed and unemployment would equal Q2Q3.
B) Employment would fall by the amount Q1Q4.
C) Employment would remain the same as in a competitive market.
D) Q3 workers would now be employed.
E) Q4 workers would be employed and there would be no unemployment.
53) Refer to Figure 14-2. If the labour market were in a monopsonistic equilibrium, the predicted wage and number of workers employed would be
A) W4 and Q4.
B) W5 and Q4.
C) W2 and Q1.
D) W1 and Q2.
E) W1 and Q3.
54) Refer to Figure 14-2. Suppose the labour market is perfectly competitive. If a minimum wage of W4 is then established, the predicted change in the wage is
A) an increase in the wage paid.
B) a decrease in the wage paid.
C) no change in the wage paid.
D) a decrease equal to W1 – W4.
E) an increase equal to W1 – W4.
55) Refer to Figure 14-2. Suppose the labour market is initially in a monopsonistic equilibrium. If a strong union is then formed and establishes a minimum wage of W1,
A) employment will decrease to Q2.
B) the wage rate and employment will both increase to their competitive levels.
C) the wage rate will increase but employment will decrease.
D) there will be an effect on either wages or employment but not both.
E) the wage rate will decrease but employment will increase.
56) Refer to Figure 14-2. In a perfectly competitive labour market, the equilibrium wage rate and the quantity of labour employed would be
A) W4 and Q4.
B) W2 and Q2.
C) W5 and Q5.
D) W1 and Q1.
E) W5 and Q4.
57) Refer to Figure 14-2. Suppose the labour market is in a monopsonistic equilibrium. If a minimum wage is then imposed at W5, the effect would be to
A) increase employment only.
B) waste policy effort, as there would be no effect whatsoever in the labour market.
C) increase wages and maintain employment but create a pool of unemployed workers.
D) increase wages and create a shortage of workers.
E) decrease wages but employment would remain the same.
58) Refer to Figure 14-3. Suppose all of the teenage babysitters in one local area form an association and set a minimum age of 16 for working as a babysitter. Which diagram illustrates the new supply curve (SA) for babysitters?
A) diagram 1
B) diagram 2
C) diagram 3
D) none of the diagrams
E) any of the diagrams
59) Refer to Figure 14-3. Suppose all of the teenage babysitters in one local area form an association and set a minimum acceptable wage of $8 per hour. Which diagram illustrates the new supply curve (SA) for babysitters?
A) diagram 1
B) diagram 2
C) diagram 3
D) none of the diagrams
E) any of the diagrams
60) Suppose that the professional association of dentists reduces entry into their profession by lengthening the required training program. The likely effect is that
A) the supply curve of dentists will shift to the left.
B) the supply curve of dentists will shift to the right.
C) both the demand and supply curves for dentists will shift to the left.
D) the demand curve for dentists will shift to the right.
E) there will be an increase in the quantity of dentists supplied.
