Consider the information below on the labor market in a given country.QuantityWageQuantity Supplied ofDemanded ofRate/HourLaborLabor$4400 workers75 workers$5300 workers125 workers$6200 workers200 workers$7|140 workers250 workers$8100 workers300 workers$970 workers350 workers$1045 workers400 workersIf the government wanted to implement a minimum wage, which of the following potentialminimum wage would be binding and affect the market?$4$5$7$6

optioc c is correct answer $7 It is because a wage that's binding are above the equilibrium wage…

Answered: $10 45 workers 400 workers If the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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4 currently, the federal minimum wage is set at $7.25 per hour. a survey conducted bynewsweekmagazine (june 27, 2011) indicated that many americans would be willing to work for far less than the minimum wage—some as low as 25¢ per hour! what would happen if the u.s. government eliminated the minimum wage and instead let wages be set by the marketplace?
The market price for hiring fast food workers is $8 an hour, but the City imposes a minimum wage of $15. Here the minimum wage is a -- and the City's action will result in a of fast food workers. ceiling; surplus ceiling; shortage floor; surplus floor; shortage
Explain the pros and cons of imposing a minimum wage in a country and illustrate your arguments by using a graph for labor market (number of employees on the horizontal axis and the level of wage on the vertical axis).
Suppose that in an effort to help low-skill workers the government raises the permissible minimum wage to $15 per hour. Can you think of any unintended secondary effects that will result from this action? Will all low-skill workers be helped by minimum wage law?
Problem 7. Suppose the minimum wage is imposed as a price floor in the labor market. For each potential price floor in the graph ($14, $15, and $16), determine: 7.1. What is the wage rate going to be in the market? Why? Wage rate 7.2. What is the quantity supplied and quantity demanded at that wage rate? 7.3. What is the quantity of labor actually traded at that wage rate? Why? 7.4. Will there be a surplus or shortage of labor, and how much? 7.5. Is this price floor effective and why? $16 15 14 0 80 100 110 S D 200 Quantity of labor (in thousands)
Figure 4-17 Price $8.00 7.00 6.00 5.00 4.00 30 40 50 60 70 Refer to Figure 4-17 4-17.png. If this figure represented a labor market where the equilibrium price for labor was $6 an hour and the government decided to implement a minimum wage of $8 an hour, which of the following are true? 30 people would be better off because they get to keep their jobs at the new $8 an hour minimum wage. O 20 people would be made actively worse off because they would have voluntarily worked for $6 an hour, but are now unemployed and have no job at all. there is a surplus of labor equal to 40 workers that represents an increase in unemployment. O All of the answer choices are correct
Which of the following is the most likely outcome of minimum wage laws? an increase in both the quantity of labor supplied by workers and the quantity of labor demanded by firms an increase in the quantity of labor supplied by workers and a decrease in the quantity of labor demanded by firms a decrease in the quantity of labor supplied by workers and an increase in the quantity of labor demanded by firms a decrease in both the quantity of labor supplied by workers and the quantity of labor demanded by firms
7.Draw a theoretical market for low-skilled labor along with a non-binding minimum wage. Indicate if there is a shortage or surplus; and if there is, explain what it means
The minimum wage in Arizona is $10.50. This is higher than the federal minimum wage of $7.25. Which of the following is true? Select the correct answer below: Businesses in Arizona cannot pay workers less than $10.50 per hour. Businesses in Arizona can pay workers wages between $7.25 $10.50 per hour. Businesses in Arizona can pay workers less than $10.50 per hour. all of the above.
How would imposing a minimum wage below the market-clearing wage affect employment in a competitive labor market? Group of answer choices a. Employment would be unchanged because the market forces drive the wage to a higher level. b. Employment would decrease as some workers who are willing to work at the lower competitive wage would no longer be able to find work. there would be a shortage of labor c. Employment would increase because setting a minimum wage below the market wage would increase the quantity of labor demanded d. Employment would decrease because the quantity of labor supplied would decrease
assume that a minimum wage already exists in society. Please explain the effects on the economy of increasing the minimum wage. Be sure to discuss who gains and who loses(Consumer and Producer surplus) as well the inefficiencies that this price floor would create. Make sure you show this graphically as well.

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$10 45 workers 400 workers If the government wanted to implement a minimum wage, which of the following potential minimum wage would be binding and affect the market? $4 $5 $7 $6