25)
In Figure 10.3 an increase in the demand for labor will cause the equilibrium

A)
wage and hours of labor used to increase.

B)
wage and hours of labor used to decrease.

C)
wage to increase and hours of labor used to decrease.

D)
wage to decrease and hours of labor used to increase.

26)
In Figure 10.3 a decrease in the demand for labor will cause the equilibrium

A)
wage and hours of labor used to increase.

B)
wage and hours of labor used to decrease.

C)
wage to increase and hours of labor used to decrease.

D)
wage to decrease and hours of labor used to increase.

27)
In Figure 10.3 an increase in the supply of labor will cause the equilibrium

A)
wage and hours of labor used to increase.

B)
wage and hours of labor used to decrease.

C)
wage to increase and hours of labor used to decrease.

D)
wage to decrease and hours of labor used to increase.

28)
Figure 10.3 describes the labor market for a manufacturing industry. In the
short run an increase in the price of the good made by the workers will

A)
cause the equilibrium wage and the hours of labor used to increase.

B)
not have an effect on this market.

C)
cause the equilibrium wage to increase but will not change the hours of labor
used.

D)
cause the equilibrium wage and the hours of labor used to decrease.

29)
Figure 10.3 describes the labor market for a manufacturing industry. In the
short run an increase in the productivity of the workers will

A)
cause the equilibrium wage and the hours of labor used to increase.

B)
not have an effect on this market.

C)
cause the equilibrium wage to increase but will not change the hours of labor
used.

D)
cause the equilibrium wage to increase and the hours of labor used to decrease.

30)
A minimum wage that is less than the prevailing market wage will

A)
have no effect on the market.

B)
increase unemployment.

C)
increases wages.

D)
reduce wages.

31)
Suppose that a minimum wage is set that is higher than wages for retail
workers. This is ________ news for shoppers and ________ retail workers.

A)
bad; good news for some, but not all

B)
bad; good news for all

C)
good; good news for some but not all

D)
good; good news for all

32)
Suppose that studies show that a 10% increase in the minimum wage decreases the
number of minimum wage jobs by 1%. That would be the case if

A)
demand for labor is inelastic.

B)
demand for labor is elastic.

C)
supply of labor is inelastic.

D)
supply of labor is elastic.

33)
An increase in the minimum wage will have a large effect on the number of
workers employed in minimum wage occupations if

A)
demand for workers is elastic.

B)
demand for workers is inelastic.

C)
supply of workers is elastic.

D)
supply of workers is inelastic.

34)
Raising the minimum wage would

A)
help some workers while hurting others.

B)
help all workers and hurt all firms.

C)
hurt all workers and help some consumers.

D)
help workers and help consumers.