Suppose the equilibrium wage is $10 per hour. A minimum wage Select one: O A price ceiling: $12 per hour O B. price floor; $8 per hour O C price ceiling; $10 per hour O D. price floor, $12 per hour
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- A shortage exists in a market when: Select one: O a. None of the answers are correct O b. quantity demanded = quantity supplied C. quantity demanded quantity suppliedD WAGE 10 9 8 7 6 5 4 3 2 Refer to Figure 19-1. If the minimum wage in this market is $8, then O a. there is a surplus of 1 million workers. O b. employment is 10 million. Oc. there is a surplus of 3 million workers. O d. employment is 12 million. Figure 19-1 Supply Demand 2 4 6 8 10 12 14 16 18 20 QUANTITY OF LABOR (Millions of workers)Suppose the government has imposed a price floor on cellular phones. Which of the following events could transform the price floor from one that is binding to one that is not binding? Select one: O a. Cellular phones become less popular. O b. Firms expect the price of cellular phones to fall in the future. O c. The components used to produce cellular phones become less expensive. O d. Traditional land line phones become more expensive.
- Currently the price for wheat is $5 per bushel. To help the farmers, the government promises that it will buy any wheat that farmers can't sell at a price of $6 per bushel. Select one. O a This will decrease producer surplus. O b This is an example of quota. O c This will decrease consumer surplus. O d This is an example of price ceilingIn 1966, the Catholic Church eliminated the centuries-old requirement that members abstain from eating meat on Fridays. Catholics customarily ate fish on Friday. Given this, economics would predict that o a. the price of fish would increase and the price of meat would fall. o b. the price of both meat and fish would fall. o C. the price of both meat and fish would rise. o d. the price of fish would decrease and the price of meat would rise.Refer to Figure 6.1. which of the following is TRUE? O A. At Line A, there is a binding price ceiling OB. At Line A, there is a binding price floor OC At Line A a shortage exists at this price. O D. None of the above. price Supply Line A Demand quantity
- 3.30 3.00 Supply 2.70 2.40 2.10 Demand 1.80 1.50 1.20 0.90 0.60 0.30 50 100 150 200 250 300 350 400 Suppose that a price ceiling is set at $2.70. Which of the following is true? O a. There will be a shortage of 200 units Ob. There will be an excess supply of 100 units Oc. There will be a excess supply of 200 units Od. The ceiling is non-bindingP1 P2 f- X The US government has established a minimum wage (price floor). Where on the graph above would you find this restriction in relation to equilibrium and how would it affect the market? O P1 and it would create a surplus of workers O P1 and it would create a shortage of workers O P2 and it would create a surplus of workers O P2 and it would create a shortage of workersA shortage will occur if a is set the equilibrium price. O A)price ceiling, below B) price floor, below C) price ceiling, above D) price floor, above
- The equilibrium wage in a local labor market is $10 per hour. If a minimum wage of $15 per hour is imposed, which of the following will occur? Select one: a. There will be a decrease in the quantity of labor supplied by households. O b. There will be an increase in unemployment. O c. All of these will occur. O d. There will be an increase in the quantity of labor demanded by firms.Wage Rate $8.00 $5.50 0 250 350 450 Quantity of Labor (in thousands) O $5.50 and 200,000. Sd Assumptions: (1) Employers in this market are willing and able to ignore minimum wage laws; (2) Sd represents the supply of domestic-born (and legal immigrant) workers; (3) St represents the total supply of workers in this labor market (Sd plus illegal immigrants); and (4) unless otherwise stated, illegal immigration is not effectively blocked by the government. O $5.50 and 250,000. St The equilibrium wage and number of illegal immigrants working are, respectively, O $8.00 and 350,000. D O $5.50 and 450,000.Refer to the graph, which shows the market for a product. Which of the following could not explain the indicated increase in equilibrium price from P1 to P22 Supply Price P2 P₁ 0 Q₁ Q₂ Quantity D₁ D2 O a. An increase in consumer incomes O b. An increase in the price of a substitute product O c. An increase in production costs O d. A decrease in the price of a complementary product