Question 1

Those that lose 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.

Question 2

After increasing from $5.15 in 2007 to $7.25 in 2009, the inflation-adjusted minimum wage

Accepted Answer

A) was still at its lowest level in history. 
B) was at its long term historical average level. 
C) was at its all-time highest level. 
D) was sufficient to keep a family of four out of poverty. 
A) was still at its lowest level in history. 
B) was at its long term historical average level. 
C) was at its all-time highest level. 
D) was sufficient to keep a family of four out of poverty.

Question 3

Suppose you were to hear a politician defend the minimum wage on the grounds that it would not cause that much unemployment because firms have to hire a certain number of workers, you would know this person 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 4

Economists generally believe that increases in the minimum wage will

Accepted Answer

A) increase teen unemployment. 
B) decrease teen unemployment. 
C) have a dramatic impact on the poverty rate. 
D) have a dramatic impact on the taxes paid by the working poor. 
A) increase teen unemployment. 
B) decrease teen unemployment. 
C) have a dramatic impact on the poverty rate. 
D) have a dramatic impact on the taxes paid by the working poor.

Question 5

Suppose you were to hear a politician defend the minimum wage on the grounds that the low-wage workers would spend more of their extra income that wealthier employers would and therefore the effect would be positive, you would know this person 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 6

-In Figure 33.1, how many people would be unemployed at 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 7

The "macroeconomics" rebuttal to the traditional analysis of the minimum wage argues that

Accepted Answer

A) the rich consume less than the poor out of extra income, therefore an increase in the minimum wage increases aggregate demand. 
B) the rich consume more than the poor out of extra income, therefore an increase in the minimum wage increases aggregate demand. 
C) people work harder when they feel they are inadequately compensated, therefore an increase in the minimum wage may actually lower productivity. 
D) in the short run the demand elasticity of labor is such that businesses will actually increase the number of workers hired when the minimum wage increases. 
A) the rich consume less than the poor out of extra income, therefore an increase in the minimum wage increases aggregate demand. 
B) the rich consume more than the poor out of extra income, therefore an increase in the minimum wage increases aggregate demand. 
C) people work harder when they feel they are inadequately compensated, therefore an increase in the minimum wage may actually lower productivity. 
D) in the short run the demand elasticity of labor is such that businesses will actually increase the number of workers hired when the minimum wage increases.

Question 8

To achieve its goal of keeping a family of four with one wage earner out of poverty, the minimum wage would have to be

Accepted Answer

A) $5.15 per hour 
B) $7.25 per hour 
C) nearly $9.00 per hour 
D) more $11.00 per hour 
A) $5.15 per hour 
B) $7.25 per hour 
C) nearly $9.00 per hour 
D) more $11.00 per hour

Question 9

The largest family size for which the earnings of a single minimum wage job holder has been above the poverty line is

Accepted Answer

A) one. 
B) two. 
C) three. 
D) four. 
A) one. 
B) two. 
C) three. 
D) four.

Question 10

To get to its inflation adjusted all-time high, the minimum wage in 2016 would have to be at least

Accepted Answer

A) $5.50. 
B) $11.00. 
C) $14.00. 
D) $20.00. 
A) $5.50. 
B) $11.00. 
C) $14.00. 
D) $20.00.

Question 11

The "elasticity" rebuttal to the traditional analysis of the minimum wage, stating that employers' demand for workers is unresponsive to wage changes, centers on the idea that

Accepted Answer

A) the rich consume less than the poor out of extra income, therefore an increase in the minimum wage increases aggregate demand. 
B) the rich consume more than the poor out of extra income, therefore an increase in the minimum wage increases aggregate demand. 
C) people work harder when they feel they are adequately compensated therefore an increase in the minimum wage may pay for itself. 
D) in the short run, the demand elasticity of labor is such that business will not reduce the number of workers hired when the minimum wage increases. 
A) the rich consume less than the poor out of extra income, therefore an increase in the minimum wage increases aggregate demand. 
B) the rich consume more than the poor out of extra income, therefore an increase in the minimum wage increases aggregate demand. 
C) people work harder when they feel they are adequately compensated therefore an increase in the minimum wage may pay for itself. 
D) in the short run, the demand elasticity of labor is such that business will not reduce the number of workers hired when the minimum wage increases.

Question 12

At $5.15 per hour the 2007 inflation adjusted minimum wage was

Accepted Answer

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

Question 13

If the demand for labor is inelastic then the unemployment caused by raising the minimum wage is

Accepted Answer

A) less than if it were elastic. 
B) the same as if it were elastic. 
C) more than if it were elastic. 
D) unrelated to labor demand elasticity. 
A) less than if it were elastic. 
B) the same as if it were elastic. 
C) more than if it were elastic. 
D) unrelated to labor demand elasticity.

Question 14

Suppose you were to hear an economist defend the minimum wage on the grounds that she estimated that the demand for labor is nearly vertical, 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 15

Suppose you were to hear an economist oppose the minimum wage on the grounds that she estimated the loss to small businesses and to the unemployed and found that it exceeded the gain to workers getting a higher wage. 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 16

The heart of the argument against an increase in the minimum wage is one based on

Accepted Answer

A) the macroeconomic argument. 
B) the elasticity argument. 
C) the work effort argument. 
D) consumer and producer surplus analysis. 
A) the macroeconomic argument. 
B) the elasticity argument. 
C) the work effort argument. 
D) consumer and producer surplus analysis.

Question 17

Of the people working for the minimum wage ___ live in households with incomes below the poverty line.

Accepted Answer

A) 10% 
B) 30% 
C) 70% 
D) 90% 
A) 10% 
B) 30% 
C) 70% 
D) 90%

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

The longest period of time where the minimum wage remained constant in nominal terms was during

Accepted Answer

A) the Reagan Administration. 
B) the Bush (George Herbert Walker)Administration. 
C) the Clinton Administration. 
D) the Eisenhower Administration. 
A) the Reagan Administration. 
B) the Bush (George Herbert Walker)Administration. 
C) the Clinton Administration. 
D) the Eisenhower Administration.

Question 20

It is always in the interests of workers for the minimum wage to be as high as possible.

Accepted Answer

A) True 
 B)False

Exam 33: Minimum Wage

Those that lose from an increase in the minimum wage are

After increasing from $5.15 in 2007 to $7.25 in 2009, the inflation-adjusted minimum wage

Suppose you were to hear a politician defend the minimum wage on the grounds that it would not cause that much unemployment because firms have to hire a certain number of workers, you would know this person to be relying on the ____ argument.

Economists generally believe that increases in the minimum wage will

Suppose you were to hear a politician defend the minimum wage on the grounds that the low-wage workers would spend more of their extra income that wealthier employers would and therefore the effect would be positive, you would know this person to be relying on the ____ argument.

-In Figure 33.1, how many people would be unemployed at the minimum wage?

The "macroeconomics" rebuttal to the traditional analysis of the minimum wage argues that

To achieve its goal of keeping a family of four with one wage earner out of poverty, the minimum wage would have to be

The largest family size for which the earnings of a single minimum wage job holder has been above the poverty line is

To get to its inflation adjusted all-time high, the minimum wage in 2016 would have to be at least

The "elasticity" rebuttal to the traditional analysis of the minimum wage, stating that employers' demand for workers is unresponsive to wage changes, centers on the idea that

At $5.15 per hour the 2007 inflation adjusted minimum wage was

If the demand for labor is inelastic then the unemployment caused by raising the minimum wage is

Suppose you were to hear an economist defend the minimum wage on the grounds that she estimated that the demand for labor is nearly vertical, you would know her to be relying on the ____ argument.

Suppose you were to hear an economist oppose the minimum wage on the grounds that she estimated the loss to small businesses and to the unemployed and found that it exceeded the gain to workers getting a higher wage. You would know her to be relying on the ____ argument.

The heart of the argument against an increase in the minimum wage is one based on

Of the people working for the minimum wage ___ live in households with incomes below the poverty line.

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

The longest period of time where the minimum wage remained constant in nominal terms was during

It is always in the interests of workers for the minimum wage to be as high as possible.

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

Filters