Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 7, Problem 5MCQ
To determine
To choose: The appropriate option to fill in the blanks in the given statement.
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Students have asked these similar questions
Suppose that the market for labor is initially in equilibrium. An increase in the price of output will cause the equilibrium wage
a. and the equilibrium quantity of labor to fall. b. and the equilibrium quantity of labor to rise. c. to rise and the equilibrium quantity of labor to fall. d. to fall and the equilibrium quantity of labor to rise.
7. The demand curve for labor shows what?a. The demand for labor is immune to wage pressures.b. There is a negative relationship between wage and quantity.c. The supply of labor is higher at higher wage levels.d. There is a positive relationship between wage and quality.
Question 8
The market demand for labor decreases if
a. the price of capital decreases.
b. the wage rate decreases.
c. the productivity of labor increases.
d. the wage rate increases.
Chapter 7 Solutions
Foundations of Economics (8th Edition)
Ch. 7 - Prob. 1SPPACh. 7 - Prob. 2SPPACh. 7 - Prob. 3SPPACh. 7 - Prob. 4SPPACh. 7 - Prob. 5SPPACh. 7 - Prob. 6SPPACh. 7 - Prob. 7SPPACh. 7 - Prob. 8SPPACh. 7 - Prob. 9SPPACh. 7 - Prob. 10SPPA
Ch. 7 - Prob. 11SPPACh. 7 - Prob. 1IAPACh. 7 - Prob. 2IAPACh. 7 - Prob. 3IAPACh. 7 - Prob. 4IAPACh. 7 - Prob. 5IAPACh. 7 - Prob. 6IAPACh. 7 - Prob. 7IAPACh. 7 - Prob. 8IAPACh. 7 - Prob. 9IAPACh. 7 - Prob. 1MCQCh. 7 - Prob. 2MCQCh. 7 - Prob. 3MCQCh. 7 - Prob. 4MCQCh. 7 - Prob. 5MCQCh. 7 - Prob. 6MCQCh. 7 - Prob. 7MCQCh. 7 - Prob. 8MCQ
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- when the minimum wage is set above the equilibrium market wage, A. there will be a shortage of labor at the minimum wage B. the unemployment rate will rise C. it will have no effect on the quantity of labor employed D. the unemployment rate will risearrow_forwardWAGE (Dollars per hour) 16 14 12 10 8 6 4 2 0 Supply Demand 200 400 600 800 1000 1200 1400 1600 LABOR (Thousands of workers) Graph Input Tool Market for Labor Wage (Dollars per hour) Labor Demanded (Thousands of workers) Which of the following statements are true? Check all that apply. 6.00 1,000 Shortage or Surplus? Shortage Labor Supplied (Thousands of workers) Complete the following table with the quantity of labor supplied and demanded if the wage is set at $6.00. Then indicate whether this wage will resu in a shortage or a surplus. Hint: Be sure to pay attention to the units used on the graph and in the table. For example, type in 100 for 100,000 workers. Labor Demanded Labor Supplied Wage (Thousands of workers) (Thousands of workers) $6.00 1,000 600 Suppose the federal government contemplates a new law that would create a national minimum wage of $6.00 per hour. 600 In this labor market, a minimum wage of $8.50 would be binding. □ If the minimum wage is set at $6.00, the market…arrow_forward1. In the labor market, the demand for labor represents A)The number of hours indivduals wish to work at all wages levels B)The number of hours of labor employers wish to employ at all wages levels C)The hours of overtimes workers are willing to work D)The number of employers in the marketarrow_forward
- Read the news clip, then answer the following questions. If the new minimum wage of $15.00 an hour is enforced and the maximum amount of job search takes place, then the higher minimum wage workers' surplus and firms' surplus. OA. increases; decreases OB. decreases; decreases OC. increases; increases OD. decreases; increases The $15 wage fairness to our economy. does not bring brings New York "Raising and bring been force Between gradually of the statearrow_forward7. Wages and salaries comprise the price of labour. What happens to the market for labour when immigration increases? (A) Demand rises; wages go up. (B) Demand declines; wages go down. (C) Supply rises; wages go down. (D) Supply declines; wages go uparrow_forwardIf the minimum wage is set A. equal to the equilibrium wage, it will create a shortage of labor. B. equal to the equilibrium wage, it will create a surplus of labor. C. below the equilibrium wage, it will create unemployment. D. below the equilibrium wage, it will create a shortage of labor. E. above the equilibrium wage, it will create unemployment.arrow_forward
- The table gives the demand and supply schedules of teenage labor. Wage rate ($ per hour) Quantity demanded (hours per month) Quantity supplied (hours per month) 4 3000 1000 5 2500 1500 6 2000 2000 7 1500 2500 8 1000 3000 a.Calculate the equilibrium wage rate, the number of hours worked, and the quantity of unemployment. b.If a minimum wage for teenagers is set at $5 an hour, how many hours do they work and how many hours of teenage labor are unemployed? c.If a minimum wage is set at $7 an hour, how many hours do teenagers work and how many are unemployed?arrow_forward10. If unskilled domestic workers and unskilled foreign workers are substitutes in the production process, then a more open foreign worker policy is likely to result in all of the following except: (A). The total supply of unskilled labor will shift outward.(B). The equilibrium wage rate in the market will decrease.(C). The total workforce will increase(D). The level of wages received by domestic workers will decrease.(E). The labor demand curve will shift to the right. Choose one of the answers from the five choices provided. And please, also provide a brief description, explanation or argument for your choice. Thank you Bartleby!arrow_forwardAn increase in the minimum wage will tend to cause which of the following to occur? Select one: a. an increase in the size of the surplus of labor b. a rightward shift in the supply of labor O c. a leftward shift in the demand for labor O d. a reduction in the unemployment ratearrow_forward
- 4. A rise of the minimum wage is least likely to diminish welfare if:A. the minimum wage is close to the median wageB. unskilled labor is relatively abundantC. firms can easily alter the workforce compositionD. the demand for labor is inelastic, i.e. does not change much with the wagearrow_forwardEconomics The graph on the right shows the demand for and supply of labor in a market with an equilibrium wage rate of $7 per hour. Show the impact on the graph if a minimum wage of $9 per hour is enacted. 1. Using the point drawing tool, plot the point that illustrates the quantity of labor demanded when the minimum wage is set at $9 per hour. Label your point 'A.' 2.) Using the point drawing tool, plot a point that illustrates the quantity of labor supplied when the minimum wage is set at $9 per hour. Label your point 'B.' Carefully follow the instructions above and only draw the required objects. 3. According to the graph, when the minimum wage is set at $9 per hoer, there will be ____ unemplovment of _____ workers in this market. A. frictional; 4 million. B. structural; 4 million. C. frictional; 2 million. D. structural; 2 million.arrow_forward4a. In the space to the right, draw a graph that shows a high demand for labor in industry X and a high supply of labor in that industry. 4b. Draw a line to the y axis, showing the wage rate. 4c. What will the wage rate be like in this particular industry? 4d. What real-life industry do you think best matches this scenario? 5. In what scenario were wages the highest? 6. What factors might cause the supply of workers in a given industry to be low? 7. In what scenario were wages the lowest? 8. Do you think wages are always connected to the importance of a job? Explain.arrow_forward
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