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QUESTION 16 Which of the following statements about the minimum wage is true? A.

ID: 1221178 • Letter: Q

Question

QUESTION 16

Which of the following statements about the minimum wage is true?

A. The minimum wage has not had any impact on income inequality.

B. Adjusting for inflation, the real minimum wage has fallen in the last 30 years.

C. Because the minimum wage has been increased many times in the last 30 years, income inequality is now lower than it was in the mid-20th century.

D. The minimum wage tends to create inflation, which benefits the wealthy more than the poor.

1 points   

QUESTION 17

Between 2005 and 2010, the increase in the foreign-born labor force was

A. about equal to the increase in the native-born labor force.

B. about twice as large as the increase in the native-born labor force.

C. about half as large as the increase in the native-born labor force.

D. the only source of labor-force growth.

1 points   

QUESTION 18

If the labor force increases in size, which of the following would NOT occur?

A. The labor supply curve would shift to the right.

B. The equilibrium wage would fall.

C. The number of workers employed would rise.

D. The labor demand curve would shift to the right.

1 points   

QUESTION 19

If the labor pool effect of globalization is weaker than the market expansion effect, then globalization will lead to a(n)__________ in wages and a(n)__________ in the number of workers hired.

A. decrease; decrease

B. decrease; increase

C. increase; increase

D. increase; decrease

1 points   

QUESTION 20

What happens to the marginal product of additional cooks in a restaurant kitchen as more cooks are hired?

A. Marginal product will stay constant.

B. Marginal product will rise continuously because each additional cook contributes something to the production process.

C. We cannot know because marginal product depends entirely on the skills of the individual cooks.

D. Marginal product will eventually fall because the cooks will start to get in each other's way and reduce each other's ability to produce.

1 points   

QUESTION 21

A firm will hire workers until the

A. marginal revenue from hiring an additional worker is maximized.

B. marginal revenue from hiring an additional worker is zero.

C. average revenue from hiring an additional worker is zero.

D. marginal revenue from hiring an additional worker no longer exceeds the marginal cost of hiring that worker.

1 points   

QUESTION 22

College-educated workers tend to reach their peak earnings between the ages of 45 and 54.

A. True

B. False

1 points   

QUESTION 23

If the adult population in the United States was 225 million people and 150 million of those people were in the labor force, the labor force participation rate would be

A. 67 percent.

B. 150 percent.

C. 33 percent.

D. 40 percent.

1 points   

QUESTION 24

Which of the following best describes the marginal product of labor for an additional employee in a landscaping firm?

A. The number of additional acres the firm can mow in a week because of that employee.

B. The extra money the firm brings in because of that employee.

C. The additional profits the firm earns because of that employee.

D. The additional wages the firm must pay in labor costs because of that employee.

1 points   

QUESTION 25

The labor force is the part of the adult population that is either working or actively looking for a job.

A. True

B. False

1 points   

QUESTION 26

Which of the following individuals would be likely to face the lowest opportunity cost of a college education?

A. A high school basketball star who is offered a multimillion-dollar contract with the NBA, as well as a full scholarship at the university of his choice.

B. A high school graduate who has few skills, does not qualify for a full scholarship, and would be able to work as a server at her family's restaurant if she did not go to college.

C. The 40-year-old owner of a successful construction company who wants to finish college as an example to his children.

D. A well-paid staff member at a college who can take classes for free.

1 points   

QUESTION 27

Which of the following statements about an effective minimum wage is true?

A. A minimum wage shifts the demand curve for labor to the right.

B. A minimum wage shifts the supply curve for labor to the right.

C. A minimum wage tends to create unemployment among unskilled workers.

D. Increasing the minimum wage makes it easier for unskilled workers to find jobs.

1 points   

QUESTION 28

If the equilibrium wage in the market for unskilled labor is $8.00 per hour and the government sets a minimum wage at $8.00 per hour, which of the following will occur?

A. Some unskilled workers will lose their jobs.

B. The wages paid to unskilled workers will rise.

C. The number of workers employed in the market will increase.

D. The minimum wage will have no effect because it is set at the equilibrium wage.

1 points   

QUESTION 29

If the labor force increases in size, which of the following would occur?

A. The equilibrium wage would fall.

B. The quantity of workers employed would fall.

C. The labor demand curve would shift to the right.

D. The labor supply curve would shift to the left.

1 points   

QUESTION 30

Which of the following would be an effect of increased technology on the labor market?

A. People with fewer skills may face more difficulty getting a job.

B. The unemployment rate would tend to increase.

C. People with high levels of technical skill may see reduced compensation.

D. The advantage to gaining a college education would be reduced.

A. The minimum wage has not had any impact on income inequality.

B. Adjusting for inflation, the real minimum wage has fallen in the last 30 years.

C. Because the minimum wage has been increased many times in the last 30 years, income inequality is now lower than it was in the mid-20th century.

D. The minimum wage tends to create inflation, which benefits the wealthy more than the poor.

Explanation / Answer

Answers:

16. Which of the following statements about the minimum wage is true?

C. Because the minimum wage has been increased many times in the last 30 years, income inequality is now lower than it was in the mid-20th century.

17. Between 2005 and 2010, the increase in the foreign-born labor force was

D. the only source of labor-force growth

18. If the labor force increases in size, which of the following would NOT occur?

D. The labor demand curve would shift to the right

19. If the labor pool effect of globalization is weaker than the market expansion effect, then globalization will lead to a(n) increase in wages and a(n) decrease in the number of workers hired.

D. increase; decrease

20. What happens to the marginal product of additional cooks in a restaurant kitchen as more cooks are hired?

D. Marginal product will eventually fall because the cooks will start to get in each other's way and reduce each other's ability to produce

21. A firm will hire workers until the

B. marginal revenue from hiring an additional worker is zero.

22. College-educated workers tend to reach their peak earnings between the ages of 45 and 54

A. True

23. If the adult population in the United States was 225 million people and 150 million of those people were in the labor force, the labor force participation rate would be

A. 67 percent

Explanation:

Labor Force Participation Rate    = (Labor Force / Total population)*100

                                                = (150/225)*100

                                                = 66.66%

24. Which of the following best describes the marginal product of labor for an additional employee in a landscaping firm?

D. The additional wages the firm must pay in labor costs because of that employee

25. The labor force is the part of the adult population that is either working or actively looking for a job.

B. False

Explanation:

   The labor force is a part in a adult population, but we can consider only those who are currently working. We should not consider the people who are actively looking for a job.

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