Question 1

In 1981,the U.S.federal minimum wage was increased to

Accepted Answer

A)  $2.00 per hour
B)  $2.50 per hour
C)  $3.35 per hour
D)  $4.00 per hour
E)  $5.15 per hourF) A) and E)
G) A) and D)

Question 2

The Following Questions Refer to the graph below. 1D1 B) D1D1 to DD C) S1S1 to SS D) SS to S1S1 E) None of the above" class="answers-bank-image d-inline" rel="preload" >
-An increase in rent that leads to increased profitability of producing rental housing will lead to which of the following shifts in the long run?

Accepted Answer

A)  DD to D1D1
B)  D1D1 to DD
C)  S1S1 to SS
D)  SS to S1S1
E)  None of the aboveF) All of the above
G) A) and D)

Question 3

In a mixed economy,governments intervene in markets to control inflation.

Accepted Answer

A) True 
 B)False

Question 4

Approximately 20 U.S.cities have rent control laws.

Accepted Answer

A) True 
 B)False

Question 5

The alternative analysis of the minimum wage indicates that which of the following may be true?

Accepted Answer

A)  The demand curve is vertical over the relevant range
B)  The supply curve is vertical over the relevant range
C)  There is only a very slight unemployment effect of a minimum wage
D)  All of the above
E)  None of the aboveF) C) and E)
G) A) and E)

Question 6

A surplus of labor is unemployment.

Accepted Answer

A) True 
 B)False

Question 7

Limited amounts of capital eventually lead to diminishing returns to labor.

Accepted Answer

A) True 
 B)False

Question 8

As the wage increases,the quantity of labor an individual supplies may decreasE.

Accepted Answer

A) True 
 B)False

Question 9

Firms can offset increased wage costs due to an increase in the minimum wage by increasing efficiency.
126.Evidence indicates the minimum wage has little effect on the income distribution.

Accepted Answer

A) True 
 B)False

Question 10

The Following Questions Refer to the graph below. 
-If the wage rate is $10,what is the quantity of labor supplied?

Accepted Answer

A)  0
B)  8
C)  16
D)  22
E)  25F) C) and D)
G) D) and E)

Question 11

If people are forced to commute as a result of a rent control law in a city,which of the following results? An increase in

Accepted Answer

A)  Rent paid by commuters
B)  Direct commuting costs
C)  Opportunity costs for commuters
D)  Pollution and traffic congestion in cities
E)  All of the aboveF) None of the above
G) C) and D)

Question 12

The Following Questions Refer to the graph below. 
-If the supply and demand for rental housing are DD and SS,what effect will a rent control law that sets the maximum allowable rent at $800 have on the market? It will lead to

Accepted Answer

A)  A surplus of 5 thousand units
B)  A shortage of 5 thousand units
C)  A surplus of 10 thousand units
D)  A shortage of 10 thousand units
E)  No change in equilibrium rent or quantityF) A) and C)
G) B) and D)

Question 13

There are examples of rent controls from as early as the 1700s.

Accepted Answer

A) True 
 B)False

Question 14

If an increase in the wage rate from $6.00 per hour to $6.50 per hour causes a worker to decrease his hours worked from 40 to 35 hours per week,which effect dominates?

Accepted Answer

A)  Substitution
B)  Income
C)  Wage
D)  Wealth
E)  LeisureF) B) and C)
G) A) and E)

Question 15

Rent controls result in illegal payments to acquire housing.

Accepted Answer

A) True 
 B)False

Question 16

The fact that we observe positively sloped market labor supply curves implies that

Accepted Answer

A)  The substitution effect is stronger that the income effect for most workers
B)  The income effect is stronger than the substitution effect for most workers
C)  Most workers don't have income or substitution effects
D)  The income effect plus substitution effect results in the positive slope
E)  Labor laws require workers to work at least 40 hours per weekF) A) and B)
G) B) and E)

Question 17

The marginal product of labor is the additional

Accepted Answer

A)  Revenue received when a worker's output is sold
B)  Production cost of hiring an additional labor
C)  Output produced as a result of giving workers additional capital
D)  Output produced as a result of hiring an additional worker
E)  Product developed as a result of ideas generated by workersF) D) and E)
G) A) and E)

Question 18

The Following Questions Refer to the graph below. 
-A minimum wage of $12 would lead to a quantity of labor supplied equal to

Accepted Answer

A)  0
B)  15
C)  25
D)  35
E)  More than 35F) A) and C)
G) B) and E)

Question 19

As of summer 2009,the U.S.federal minimum wage is set at what rate per hour?

Accepted Answer

A)  $5.15
B)  $5.85
C)  $6.55
D)  $7.25
E)  $8.00F) None of the above
G) C) and D)

Question 20

The minimum wage allows an individual to earn enough to keep a family of three above the poverty linE.

Accepted Answer

A) True 
 B)False

Exam 3: Government Control of Prices in Mixed Systems: Who Are the Winners and Losers

The Following Questions Refer to the graph below. -If the wage rate is $10,what is the quantity of labor supplied?

Correct AnswerverifiedShow Answer

The Following Questions Refer to the graph below. -If the supply and demand for rental housing are DD and SS,what effect will a rent control law that sets the maximum allowable rent at $800 have on the market? It will lead to

Correct AnswerverifiedShow Answer

If an increase in the wage rate from $6.00 per hour to $6.50 per hour causes a worker to decrease his hours worked from 40 to 35 hours per week,which effect dominates?

Correct AnswerverifiedShow Answer

The marginal product of labor is the additional

Correct AnswerverifiedShow Answer

The minimum wage allows an individual to earn enough to keep a family of three above the poverty linE.

Correct AnswerverifiedShow Answer

The fact that we observe positively sloped market labor supply curves implies that

Correct AnswerverifiedShow Answer

In 1981,the U.S.federal minimum wage was increased to

Correct AnswerverifiedShow Answer

Limited amounts of capital eventually lead to diminishing returns to labor.

Correct AnswerverifiedShow Answer

The Following Questions Refer to the graph below. -A minimum wage of $12 would lead to a quantity of labor supplied equal to

Correct AnswerverifiedShow Answer

In a mixed economy,governments intervene in markets to control inflation.

Correct AnswerverifiedShow Answer

The Following Questions Refer to the graph below. -An increase in rent that leads to increased profitability of producing rental housing will lead to which of the following shifts in the long run?

Correct AnswerverifiedShow Answer

Approximately 20 U.S.cities have rent control laws.

Correct AnswerverifiedShow Answer

Rent controls result in illegal payments to acquire housing.

Correct AnswerverifiedShow Answer

As the wage increases,the quantity of labor an individual supplies may decreasE.

Correct AnswerverifiedShow Answer

There are examples of rent controls from as early as the 1700s.

Correct AnswerverifiedShow Answer

Firms can offset increased wage costs due to an increase in the minimum wage by increasing efficiency. 126.Evidence indicates the minimum wage has little effect on the income distribution.

Correct AnswerverifiedShow Answer

The alternative analysis of the minimum wage indicates that which of the following may be true?

Correct AnswerverifiedShow Answer

As of summer 2009,the U.S.federal minimum wage is set at what rate per hour?

Correct AnswerverifiedShow Answer

If people are forced to commute as a result of a rent control law in a city,which of the following results? An increase in

Correct AnswerverifiedShow Answer

A surplus of labor is unemployment.

Correct AnswerverifiedShow Answer

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