Question : 51) The above figure shows the market for biologists. The : 1226533

51) The above figure shows the market for biologists. The government decides to set a minimum wage for biologists of $18 per hour. After this minimum wage is in effect, and taking account of the resources lost in job search, workers’ surplus equals ________.

A) $800

B) $900

C) $400

D) $1,800

E) $200

52) The above figure shows the market for biologists. The government decides to set a minimum wage for biologists of $18 per hour. After this minimum wage is in effect, the deadweight loss equals ________.

A) $400

B) $200

C) $800

D) $1600

E) $100

53) The above figure shows the market for biologists. The government decides to set a minimum wage for biologists of $18 per hour. After this minimum wage is in effect, unemployment equals ________ workers.

A) 100

B) 300

C) 400

D) 500

E) 200

54) A price floor is considered

A) “fair” based only on the fair results view.

B) “fair” based only on the fair rules view.

C) “unfair” based on both the fair results and fair rules views.

D) “unfair” based only on the fair results view.

E) “fair” based on the fair results view and on the fair rules view.

55) Is the minimum wage fair?

A) Yes, because all workers benefit because they are paid more.

B) No, because it enhances the prospects of voluntary exchange.

C) No, because workers who lose their jobs are made worse off.

D) Yes, because firms must pay a wage closer to a living wage.

E) Yes, because workers need the extra income.

56) The “fair rules” view of fairness says that one of the reasons a minimum wage is unfair is because it

A) benefits all workers.

B) blocks voluntary exchange.

C) is imposed by government.

D) is below the equilibrium wage rate.

E) cannot be enforced.

57) The “fair results” view of fairness says that a minimum wage law set above the equilibrium wage rate is unfair because the minimum wage

A) does not apply to all workers.

B) boosts the income of highly skilled workers.

C) benefits only those workers who are able to find and keep a job.

D) benefits nobody.

E) cannot be enforced.

58) Labor unions ________ increases in the minimum wage because an increase in the minimum wage ________ the demand for union labor.

A) support; increases

B) support; decreases

C) oppose; increases

D) oppose; decreases

E) support; has no effect on

59) Labor unions support the minimum wage because

A) the increased unemployment is good for labor.

B) the value associated with the deadweight loss goes to labor unions.

C) labor unions prefer to operate in black markets.

D) it puts upward pressure on all wages.

E) union members are usually paid the minimum wage.

60) A price floor

A) is the highest price at which it is legal to trade a particular good, service, or factor of production.

B) is the lowest price at which it is legal to trade a particular good, service, or factor of production.

C) is an illegal price to charge.

D) is the equilibrium price when the stock market crashes.

E) is the lowest price for which the quantity demanded equals the quantity supplied.