Exam 14: Labour Markets and Income Inequality

The three diagrams below show the supply and demand for teenage babysitters in one local area.The initial supply curve is S₀ in all cases. FIGURE 14-3 -Refer to Figure 14-3.Suppose the teenage babysitters in one local area are earning an equilibrium wage of $6 per hour.Now suppose the local government reduces the minimum age for working as a babysitter from 14 to 12 years of age.Which diagram illustrates the new supply curve (S_A)for babysitters?

Which of the following statements about a legislated minimum wage is true?

As a seller of labour services,a labour union is a form of

The average union wage premium in Canada is

Certain professions limit the number of students who are eligible to enroll in their programs in university - engineering,architecture,dentistry,and law,for example.Other things being equal,what is one predicted effect of such restrictions?

FIGURE 14-5 -Refer to Figure 14-5.If this labour market is perfectly competitive,an increase in the legislated minimum wage from W₂ to W₃ would

FIGURE 14-7 -Refer to Figure 14-7.The diagonal line in the diagram

Consider a monopsonistic labour market.One hundred units of labour will be supplied if the wage rate is $12,and 101 units of labour will be supplied if the wage rate is $14.The marginal cost of the 101st worker is

A Lorenz curve shows the

Which of the following statements about minimum-wage laws is most accurate?

The union wage premium refers to the

The diagram below shows the supply and demand for labour in a hypothetical town in northern British Columbia,with only one employer,a logging company. FIGURE 14-4 -Refer to Figure 14-4.The wage paid by this monopsonistic firm will be ________ and employment will be ________.

If you choose to stay in school beyond the compulsory minimum period,you are

Suppose there is a competitive market for retail workers at a large shopping mall that is large enough to constitute its own labour market.The labour demand curve is Q_D = 1000 - 20(w).The labour supply curve is Q_S = 400 + 40(w).Suppose that a union now successfully organizes the workers at this mall and obtains a wage rate of $11 (but does not affect the demand curve).The number of workers employed after unionization is

FIGURE 14-5 -Refer to Figure 14-5.Suppose this labour market is competitive.If a minimum wage of W₄ is then imposed,the number of unemployed workers would be

The diagram below shows the supply and demand for labour in a hypothetical town in northern British Columbia,with only one employer,a logging company. FIGURE 14-4 -Refer to Figure 14-4.Suppose this labour market is in a monopsonistic equilibrium.Then,suppose the provincial government of British Columbia imposes a minimum wage for employees in this industry of $30 per hour.What will be the effects on wages and employment?

Consider a wage-setting union in an otherwise competitive labour market.If the union sets a wage above the competitive level,the effect will be

Suppose there is a competitive market for retail workers at a large shopping mall that is large enough to constitute its own labour market.The labour demand curve is Q_D = 1000 - 20(w).The labour supply curve is Q_S = 400 + 40(w).What is the equilibrium level of employment?

Unions currently represent ________ employed workers in Canada.

In a perfectly competitive labour market,all workers would earn the same wage if