Question 1

Those that gain from an increase in the minimum wage are

Accepted Answer

A) all workers. 
B) those workers who keep their jobs. 
C) employers. 
D) consumers who pay lower prices for goods. 
A) all workers. 
B) those workers who keep their jobs. 
C) employers. 
D) consumers who pay lower prices for goods. B

Question 2

The majority of minimum wage workers are

Accepted Answer

A) trying to support a family. 
B) young people who are not supporting families. 
C) older workers who are retired. 
D) middle aged. 
A) trying to support a family. 
B) young people who are not supporting families. 
C) older workers who are retired. 
D) middle aged. B

Question 3

It is generally true that massive increases in the minimum wage help workers that keep their jobs more than it hurts workers that lose their jobs.

Accepted Answer

A) True 
 B)False  False

Question 4

The real minimum wage was at its all-time high

Accepted Answer

A) shortly after the increase in 1992. 
B) shortly after the increase in 1968. 
C) shortly after the increase in 1980. 
D) at its inception in the 1930's. 
A) shortly after the increase in 1992. 
B) shortly after the increase in 1968. 
C) shortly after the increase in 1980. 
D) at its inception in the 1930's.

Question 5

The EITC is a

Accepted Answer

A) tax credit to working poor families. 
B) a welfare program for which only nonworking families are eligible. 
C) a provision in the minimum wage law that allows waitresses to be paid less because they get tips. 
D) a provision in the minimum wage law that allows for a lower training wage. 
A) tax credit to working poor families. 
B) a welfare program for which only nonworking families are eligible. 
C) a provision in the minimum wage law that allows waitresses to be paid less because they get tips. 
D) a provision in the minimum wage law that allows for a lower training wage.

Question 6

If an increase in the minimum wage increases workers' incomes by $75 and reduces employers' incomes by $100, while workers' spend all of their income increase but employers reduce their spending by only eighty percent of their income reduction, aggregate spending

Accepted Answer

A) falls by $5. 
B) falls by $25. 
C) falls by $80. 
D) remains unchanged. 
A) falls by $5. 
B) falls by $25. 
C) falls by $80. 
D) remains unchanged.

Question 7

Increases in the minimum wage are in every worker's best interest.

Accepted Answer

A) True 
 B)False

Question 8

-In Figure 33.1, how many people would lose their jobs as a result of the minimum wage?

Accepted Answer

A) LS - L* 
B) L*-Lmin 
C) LS-Lmin 
D) L* 
A) LS - L* 
B) L*-Lmin 
C) LS-Lmin 
D) L*

Question 9

If you view a dollar's worth of consumer surplus (received by employers)equal to a dollar's worth of producer surplus (received by employees)then the minimum wage usually

Accepted Answer

A) increases consumer surplus more than it decreases producer surplus, for a positive net effect. 
B) increases consumer surplus less than it decreases producer surplus, for a negative net effect. 
C) decreases consumer surplus less than it increases producer surplus, for a positive net effect. 
D) decreases consumer surplus more than it increases producer surplus, for a negative net effect. 
A) increases consumer surplus more than it decreases producer surplus, for a positive net effect. 
B) increases consumer surplus less than it decreases producer surplus, for a negative net effect. 
C) decreases consumer surplus less than it increases producer surplus, for a positive net effect. 
D) decreases consumer surplus more than it increases producer surplus, for a negative net effect.

Question 10

A wage sufficient to keep a family out of poverty is called the

Accepted Answer

A) just wage. 
B) minimum wage. 
C) maximum wage. 
D) living wage. 
A) just wage. 
B) minimum wage. 
C) maximum wage. 
D) living wage.

Question 11

If a fast food restaurant was one of many hiring workers, the minimum wage was $7.25 an hour and it was paying $7.25 an hour to new employees. Suppose a worker earns a $0.75 raise to $8 an hour. Now suppose the minimum wage rises to $8.25 an hour. The government requires this worker to be paid

Accepted Answer

A) $8.00 an hour. 
B) $8.25 an hour. 
C) $9.00 an hour. 
D) somewhere between $8.25 and $9.00 an hour depending on the policies of the restaurant. 
A) $8.00 an hour. 
B) $8.25 an hour. 
C) $9.00 an hour. 
D) somewhere between $8.25 and $9.00 an hour depending on the policies of the restaurant.

Question 12

As of June 2013, after two 70-cent increases in recent years, the federal minimum wage was

Accepted Answer

A) $5.15 per hour 
B) $5.85 per hour 
C) $7.25 per hour 
D) nearly $9.00 per hour 
A) $5.15 per hour 
B) $5.85 per hour 
C) $7.25 per hour 
D) nearly $9.00 per hour

Question 13

The "work effort argument" criticizing traditional economic analyses of the minimum wage implies

Accepted Answer

A) increased real GDP should result from any increase in the nominal minimum wage. 
B) increased real GDP should result from any reduction in the nominal minimum wage. 
C) reduced real GDP should result from any increase in the nominal minimum wage. 
D) any increase in the nominal minimum wage reduces short-run aggregate supply. 
A) increased real GDP should result from any increase in the nominal minimum wage. 
B) increased real GDP should result from any reduction in the nominal minimum wage. 
C) reduced real GDP should result from any increase in the nominal minimum wage. 
D) any increase in the nominal minimum wage reduces short-run aggregate supply.

Question 14

If a fast food restaurant was one of many hiring workers, the minimum wage was $7.25 an hour and it was paying $7.25 an hour, an increase in market demand so that the new equilibrium was $9.00 per hour would cause them to

Accepted Answer

A) lower their offering wage to $6.50 an hour. 
B) raise their offering wage to $9.00 an hour. 
C) do nothing differently. 
D) pay between $7.25 and $9.00. 
A) lower their offering wage to $6.50 an hour. 
B) raise their offering wage to $9.00 an hour. 
C) do nothing differently. 
D) pay between $7.25 and $9.00.

Question 15

The lowest wage that may be legally paid for an hour's work is called the

Accepted Answer

A) just wage. 
B) minimum wage. 
C) maximum wage. 
D) living wage. 
A) just wage. 
B) minimum wage. 
C) maximum wage. 
D) living wage.

Question 16

At $7.25 per hour the 2016 inflation adjusted minimum wage was

Accepted Answer

A) nearing a 50-year low. 
B) at an all-time high. 
C) near its historical average. 
D) statutorily constant. 
A) nearing a 50-year low. 
B) at an all-time high. 
C) near its historical average. 
D) statutorily constant.

Question 17

It is generally true that modest increases in the minimum wage help workers that keep their jobs more than it hurts workers that lose their jobs.

Accepted Answer

A) True 
 B)False

Question 18

Suppose you were to hear an economist defend the minimum wage on the grounds that she estimated that when she estimated the saving rate of minimum wage workers and found it to be much smaller than the savings rate of employers. You would know her to be relying on the ____ argument.

Accepted Answer

A) macroeconomic 
B) elasticity 
C) work effort 
D) consumer and producer surplus 
A) macroeconomic 
B) elasticity 
C) work effort 
D) consumer and producer surplus

Question 19

It is possible to raise the minimum wage so high to hurt workers generally.

Accepted Answer

A) True 
 B)False

Question 20

The minimum wage has never been sufficient to get a family of ____ above the poverty line.

Accepted Answer

A) one 
B) two, three or four 
C) three or four 
D) four 
A) one 
B) two, three or four 
C) three or four 
D) four

Exam 33: Minimum Wage

Those that gain from an increase in the minimum wage are

The majority of minimum wage workers are

It is generally true that massive increases in the minimum wage help workers that keep their jobs more than it hurts workers that lose their jobs.

The real minimum wage was at its all-time high

The EITC is a

If an increase in the minimum wage increases workers' incomes by $75 and reduces employers' incomes by $100, while workers' spend all of their income increase but employers reduce their spending by only eighty percent of their income reduction, aggregate spending

Increases in the minimum wage are in every worker's best interest.

-In Figure 33.1, how many people would lose their jobs as a result of the minimum wage?

If you view a dollar's worth of consumer surplus (received by employers)equal to a dollar's worth of producer surplus (received by employees)then the minimum wage usually

A wage sufficient to keep a family out of poverty is called the

If a fast food restaurant was one of many hiring workers, the minimum wage was $7.25 an hour and it was paying $7.25 an hour to new employees. Suppose a worker earns a $0.75 raise to $8 an hour. Now suppose the minimum wage rises to $8.25 an hour. The government requires this worker to be paid

As of June 2013, after two 70-cent increases in recent years, the federal minimum wage was

The "work effort argument" criticizing traditional economic analyses of the minimum wage implies

If a fast food restaurant was one of many hiring workers, the minimum wage was $7.25 an hour and it was paying $7.25 an hour, an increase in market demand so that the new equilibrium was $9.00 per hour would cause them to

The lowest wage that may be legally paid for an hour's work is called the

At $7.25 per hour the 2016 inflation adjusted minimum wage was

It is generally true that modest increases in the minimum wage help workers that keep their jobs more than it hurts workers that lose their jobs.

Suppose you were to hear an economist defend the minimum wage on the grounds that she estimated that when she estimated the saving rate of minimum wage workers and found it to be much smaller than the savings rate of employers. You would know her to be relying on the ____ argument.

It is possible to raise the minimum wage so high to hurt workers generally.

The minimum wage has never been sufficient to get a family of ____ above the poverty line.

Economics: the Study of Opportunity Cost

Supply and Demand

The Concept of Elasticity and Consumer and Producer Surplus

Firm Production, Cost, and Revenue

Perfect Competition, Monopoly, and Economic Versus Normal Profit

Every Macroeconomic Word You Ever Heard: Gross Domestic Product, Inflation, Unemployment, Recession, Depression

Interest Rates and Present Value

Aggregate Demand and Aggregate Supply

Fiscal Policy

Monetary Policy

Federal Spending

Federal Deficits, Surpluses, and the National Debt

The Housing Bubble

The Recession of 2007-2009: Causes and Policy Responses

Is Economic Stagnation the New Normal

Is the Fiscalsky Falling: An Examination of Unfunded Social Security, Medicare, and State and Local Pension Liabilities

International Trade: Does It Jeopardize American Jobs

International Finance and Exchange Rates

The European Debt Crisis

Economic Growth and Development

Nafta, Gatt, Wto: Are Trade Agreements Good for Us

The Line Between Legal and Illegal Goods

Natural Resources, the Environment, and Climate Change

Health Care

Government-Provided Health Insurance: Medicaid, Medicare, and the Child Health Insurance Program

The Economics of Prescription Drugs

So You Want to Be a Lawyer: Economics and the Law

The Economics of Crime

Antitrust

The Economics of Race and Discrimination

Income and Wealth Inequality

Farm Policy

Ticket Brokers and Ticket Scalping

Rent Control

Economics of K-12 Education

Economics of College and University Education

Poverty and Welfare

Head Start

Social Security

Personal Income Taxes

Energy Prices

If We Build It, Will They Come and Other Sports Questions

The Stock Market Crashes

Unions

Walmart: Always Low Prices and Low Wages- Always

The Economic Impact of Casino Gambling

The Economics of Terrorism

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