Question 1

Which of the following best defines the minimum wage?

Accepted Answer

A)  The minimum annual salary a worker can make
B)  The minimum wage a worker can make
C)  The minimum annual salary an employer can provide a worker
D)  The minimum wage an employer can legally pay a workerE) C) and D)
F) B) and D)

Question 2

This is expressed in constant dollar.

Accepted Answer

A)  Nominal value of the minimum wage
B)  Real value of the minimum wage
C)  Absolute value of the minimum wage
D)  Comparative value of the minimum wageE) All of the above
F) A) and C)

Question 3

Refer to Figure 1.This would explain the difference between the nominal minimum wage and the real minimum wage.

Accepted Answer

A)  Unemployment
B)  Changes in the labor law
C)  Inflation
D)  The Fair Labor Standards ActE) A) and B)
F) B) and C)

Question 4

According to research the relatively small impacts of the minimum wage on employment results from the relatively ______________ demand and supply of labor in minimum wage labor markets.

Accepted Answer

A)  elastic
B)  inelastic
C)  unit elastic
D)  comparatively elasticE) A) and B)
F) A) and C)

Question 5

The primary reason in support of minimum wage laws is

Accepted Answer

A)  They provide a means to reduce poverty
B)  They provide a means of establishing a legal working age
C)  They provided a way of controlling unreported income
D)  They provide a means of increasing union wagesE) B) and C)
F) All of the above

Question 6

Use the graph to answer questions 
-The deadweight loss from the minimum wage is represented by the area of

Accepted Answer

A)  BCA.
B)  EBA.
C)  GBA.
D)  EGA.E) A) and C)
F) A) and D)

Question 7

The lowest wage that employers can legally pay workers is

Accepted Answer

A)  The price ceiling for salaries
B)  The minimum wage
C)  The historical trend for wages
D)  Dependent upon state labor lawE) A) and B)
F) A) and C)

Question 8

According to research the demographic group most affected by minimum wage changes is

Accepted Answer

A)  the elderly.
B)  females entering the workforce.
C)  teenagers.
D)  adult males ages 20 - 24.E) A) and B)
F) A) and C)

Question 9

Use the graph to answer questions 1 consumer surplus is A) W1AF. B) W1AB. C) W1AH. D) W1DH." class="answers-bank-image d-inline" rel="preload" >
-If the market wage is set at W1 consumer surplus is

Accepted Answer

A)  W1AF.
B)  W1AB.
C)  W1AH.
D)  W1DH.E) B) and C)
F) B) and D)

Question 10

The minimum wage is

Accepted Answer

A)  A Price ceiling
B)  A Price floor
C)  A Price maximum
D)  Both A and CE) B) and D)
F) B) and C)

Question 11

Which of the following is true about the federal minimum wage law?

Accepted Answer

A)  Only the federal government can issue a federal minimum wage requirement.
B)  The minimum wage requirement allows for more flexibility in hiring decisions.
C)  Some states also have minimum wage laws.
D)  Middle income workers are most impacted by minimum wage laws.E) C) and D)
F) None of the above C

Question 12

For the minimum wage to be applicable to its purpose it must be

Accepted Answer

A)  Set above equilibrium wage
B)  Set below equilibrium wage
C)  Equal to equilibrium wage
D)  Equal to marginal product of laborE) A) and C)
F) B) and C)

Question 13

Use the graph to answer questions 1 producer surplus is A) W1AF. B) W1AB. C) W1AH. D) W1DH." class="answers-bank-image d-inline" rel="preload" >
-If the market wage is set at W1 producer surplus is

Accepted Answer

A)  W1AF.
B)  W1AB.
C)  W1AH.
D)  W1DH.E) B) and C)
F) A) and C)

Question 14

Losers from the minimum wage laws include all of the following except

Accepted Answer

A)  businesses.
B)  consumers.
C)  workers.
D)  all of these may lose from minimum wage laws.E) None of the above
F) A) and D)

Question 15

Proponents of the minimum wage law claim that the minimum wage is no longer able to support working families and should be returned to the 1968 value.Provide an explanation for this claim.

Accepted Answer

The real value of has steadily fallen si...

Question 16

All of the following are arguments for minimum wage laws except

Accepted Answer

A)  they help the poor by increasing their incomes.
B)  the increase in income does not come at the expense of taxpayers.
C)  they provide better work incentives.
D)  they create a surplus in the labor market.E) All of the above
F) C) and D) D

Question 17

Expressed in current dollar values this is not adjusted for inflation.

Accepted Answer

A)  Nominal value of the minimum wage
B)  Real value of the minimum wage
C)  Absolute value of the minimum wage
D)  Comparative value of the minimum wageE) B) and D)
F) A) and B)

Question 18

Research on the impacts of the minimum wage has focused on all of the following except

Accepted Answer

A)  immigration.
B)  poverty.
C)  employment.
D)  school enrollment.E) B) and D)
F) None of the above

Question 19

The real value of the minimum wage reached its peak in

Accepted Answer

A)  1968
B)  1978
C)  1988
D)  2008E) B) and C)
F) A) and D)

Question 20

The minimum wage would have no impact if it is set _____________ market equilibrium.

Accepted Answer

A)  above
B)  below
C)  equal to
D)  inversely toE) A) and D)
F) A) and B) B

Exam 10: The Minimum Wage

Which of the following best defines the minimum wage?

Correct AnswerverifiedShow Answer

This is expressed in constant dollar.

Correct AnswerverifiedShow Answer

Refer to Figure 1.This would explain the difference between the nominal minimum wage and the real minimum wage.

Correct AnswerverifiedShow Answer

According to research the relatively small impacts of the minimum wage on employment results from the relatively ______________ demand and supply of labor in minimum wage labor markets.

Correct AnswerverifiedShow Answer

The primary reason in support of minimum wage laws is

Correct AnswerverifiedShow Answer

Use the graph to answer questions -The deadweight loss from the minimum wage is represented by the area of

Correct AnswerverifiedShow Answer

The lowest wage that employers can legally pay workers is

Correct AnswerverifiedShow Answer

According to research the demographic group most affected by minimum wage changes is

Correct AnswerverifiedShow Answer

Use the graph to answer questions -If the market wage is set at W1 consumer surplus is

Correct AnswerverifiedShow Answer

The minimum wage is

Correct AnswerverifiedShow Answer

Which of the following is true about the federal minimum wage law?

Correct AnswerverifiedC

For the minimum wage to be applicable to its purpose it must be

Correct AnswerverifiedShow Answer

Use the graph to answer questions -If the market wage is set at W1 producer surplus is

Correct AnswerverifiedShow Answer

Losers from the minimum wage laws include all of the following except

Correct AnswerverifiedShow Answer

Proponents of the minimum wage law claim that the minimum wage is no longer able to support working families and should be returned to the 1968 value.Provide an explanation for this claim.

Correct AnswerverifiedThe real value of has steadily fallen si...View AnswerShow Answer

All of the following are arguments for minimum wage laws except

Correct AnswerverifiedD

Expressed in current dollar values this is not adjusted for inflation.

Correct AnswerverifiedShow Answer

Research on the impacts of the minimum wage has focused on all of the following except

Correct AnswerverifiedShow Answer

The real value of the minimum wage reached its peak in

Correct AnswerverifiedShow Answer

The minimum wage would have no impact if it is set _____________ market equilibrium.

Correct AnswerverifiedB

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Use the graph to answer questions -If the market wage is set at W₁ consumer surplus is

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C

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Use the graph to answer questions -If the market wage is set at W₁ producer surplus is

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The real value of has steadily fallen si...
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D

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B