Question : 45) In the above figure, a minimum wage will not : 1240951

45) 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.

46) In the above figure, a(n) ________ 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

47) 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) 30 percent higher than nonunion wages.

D) 100 percent higher than nonunion wages.

E) 66 percent higher than nonunion wages.

48) It is estimated that, on the average and taking account of skill differentials, union wages are

A) less than nonunion wages.

B) equal to nonunion wages.

C) 10-25 percent higher than nonunion wages.

D) 100 percent higher than nonunion wages.

E) 66 percent higher than nonunion wages.

49) It is estimated that, on the average and ________, union wages are ________ because ________.

A) without taking account of skill differentials; 15-20 percent higher than nonunion wages; employers are biased against nonunion workers

B) taking account of skill differentials; 30 percent higher than nonunion wages; in some industries union workers perform jobs that require greater skill than nonunion workers and employers show bias against nonunion workers

C) without taking account of skill differentials; 30 percent higher than nonunion wages; in some industries union workers perform jobs that require greater skill than nonunion workers

D) taking account of skill differentials; 30 percent higher than nonunion wages; union workers are better qualified than nonunion workers

E) without taking account of skill differentials; equal to nonunion wages; differentiating based on union membership is discrimination and illegal

50) 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.

51) 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.

52) The real minimum wage rate

A) has generally increased since 1967.

B) has generally decreased during the 1970s and 1980s and has fluctuated around a $6.50 per hour average since the mid-1980s.

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 2009 dollars per hour) since 1967.

53) 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.

54) In the United States since 1960, the average unemployment rate was highest during the decade of the

A) 1960s.

B) 1970s.

C) 1980s.

D) 1990s.

E) 2000s.