Exam 4: Labor Demand Elasticities

If the labor market is competitive and coverage is complete, then legislation to enact a minimum wage above the equilibrium wage level would

If the absolute elasticity of labor demand is 2.0, then an eight percent increase in the wage will

In most states, there is a mandatory maximum number of children allowed per day care worker. If this maximum number is binding, then if the wages of day care workers goes up, the main effect on day care employment will be through

Own-wage elasticities of demand are

An increase in the minimum wage will decrease employment more when

A city mandates that all businesses who sell goods and services to the city must pay at least a living wage to their workers that is substantially above what low-skilled workers are currently being paid. Which of the following will result in a greater decrease in employment of low-skilled workers who were working for the affected businesses?

The own-wage elasticity of demand measures

The introduction of new forms of capital generally

Moving from the upper to the lower portion of a straight labor demand curve, the elasticity

Which of the following factors would allow a union to raise wages while losing fewer jobs?

Technological progress implies that

The short run own-wage labor demand elasticity

For a given increase in the minimum wage, which of the following would likely result in a smaller decrease in teenage employment?

Empirical estimates of the short-run employment affects of minimum wage increases

Empirical estimates of cross-wage elasticities show that

According to empirical estimates, when wages are increased by 10% the quantity of labor demanded typically falls by about

If the quantity of steel workers demanded falls from 30,000 to 20,000 when the equilibrium wage increases from $9.00 per hour to $11.00 per hour, then the own-wage elasticity of demand for these workers is

In an industry, when the price of electricity goes up, the company employs more low-skilled workers. This implies

In a simple economy, there are 100 workers. 50 workers produce clothing: one worker produces one unit of clothing. The other 50 workers produce food: one worker produces one unit of food. By trading goods, each person consumes 0.5 unit of clothing and 0.5 unit of food. A technological improvement enables one worker to produce two units of clothing. The results are that 40 workers will be producing 80 units of clothing and 60 workers will be producing food and that each person consumes 0.8 units of clothing and 0.6 units of food. Which of the following is true?

If the quantity of auto workers demanded decreases from 66,000 to 54,000 when the equilibrium wage increases from $12.00 per hour to $14.00 per hour, then the own-wage elasticity of demand for these workers is