Table 4-8
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 4-8 shows the demand and supply schedules for the low-skilled labor market in the city of Westover.
54) Refer to Table 4-8. If a minimum wage of $10.00 is mandated, there will be a
A) shortage of 20,000 units of labor.
B) surplus of 20,000 units of labor.
C) shortage of 40,000 units of labor.
D) surplus of 40,000 units of labor.
55) Refer to Table 4-8. If a minimum wage of $10.50 an hour is mandated, what is the quantity of labor demanded?
A) 400,000
B) 370,000
C) 340,000
D) 60,000
56) Refer to Table 4-8. If a minimum wage of $10.50 an hour is mandated, what is the quantity of labor supplied?
A) 400,000
B) 370,000
C) 340,000
D) 60,000
57) Refer to Table 4-8. 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.
58) Refer to Table 4-8. 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
59) Refer to Table 4-8. 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
60) Refer to Table 4-8. 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
61) Refer to Table 4-8. 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
62) 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.
63) 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.
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