Question 1

All U.S.workers are covered under the U.S.minimum wage law.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is true of the U.S.minimum wage over the 1980s and 1990s?

Accepted Answer

A) It was unchanged 
B) It increased significantly through the 1980s and was constant through the 1990s 
C) It was constant through the 1980s and then increased significantly through the 1990s 
D) It fell during the 1990s 
E) It was eliminated in the 1990s 
A) It was unchanged 
B) It increased significantly through the 1980s and was constant through the 1990s 
C) It was constant through the 1980s and then increased significantly through the 1990s 
D) It fell during the 1990s 
E) It was eliminated in the 1990s

Question 3

The U.S.minimum wage did not change throughout the 1980s and 1990s.

Accepted Answer

A) True 
 B)False

Question 4

The minimum wage in 2008 was approximately 37% of average earnings.

Accepted Answer

A) True 
 B)False

Question 5

An increase in the wage from $6 per hour to $6.50 per hour causes a worker to increase her hours worked from 40 to 45 hours per week.For this worker,which effect dominates?

Accepted Answer

A) Substitution 
B) Income 
C) Wage 
D) Wealth 
E) Leisure 
A) Substitution 
B) Income 
C) Wage 
D) Wealth 
E) Leisure

Question 6

A price ceiling must be set above equilibrium to have any effect on the market for housing.

Accepted Answer

A) True 
 B)False

Question 7

Given that a firm is selling its product in a competitive market,meaning that its marginal revenue is constant,what would the Law of Diminishing Returns to labor inputs imply about the demand for labor?

Accepted Answer

A) That the demand for labor would be constant if the market is stable 
B) That the firm would pay increasing wages to attract qualified employees 
C) The demand would diminish with the output of new workers 
D) The demand curve for labor has a negative slope resulting from declining marginal product 
E) The Law of Diminishing Returns has no effect on labor demand 
A) That the demand for labor would be constant if the market is stable 
B) That the firm would pay increasing wages to attract qualified employees 
C) The demand would diminish with the output of new workers 
D) The demand curve for labor has a negative slope resulting from declining marginal product 
E) The Law of Diminishing Returns has no effect on labor demand

Question 8

If a worker works more as the wage increases,the substitution effect is dominating.

Accepted Answer

A) True 
 B)False

Question 9

Rent control laws may lead to which of the following unintended effects?

Accepted Answer

A) Under-the-table payments 
B) Increased forced commuting 
C) Higher search costs 
D) Lost profit incentives to change the supply of rental housing 
E) All of the above 
A) Under-the-table payments 
B) Increased forced commuting 
C) Higher search costs 
D) Lost profit incentives to change the supply of rental housing 
E) All of the above

Question 10

In the short-run,who "wins" from rent control laws?

Accepted Answer

A) All people who want to rent housing 
B) Owners of rent controlled property 
C) People who buy housing 
D) Governments that pay to enforce rent control laws 
E) None of the above 
A) All people who want to rent housing 
B) Owners of rent controlled property 
C) People who buy housing 
D) Governments that pay to enforce rent control laws 
E) None of the above

Question 11

The first U.S.minimum wage was set at 25 cents an hour.

Accepted Answer

A) True 
 B)False

Question 12

The Following Questions Refer to the graph below.  
-If the wage rate is $10,what is the quantity of labor demanded?

Accepted Answer

A) 0 
B) 8 
C) 16 
D) 22 
E) 25 
A) 0 
B) 8 
C) 16 
D) 22 
E) 25

Question 13

The minimum wage is 100% of the poverty level.

Accepted Answer

A) True 
 B)False

Question 14

Rent controls lead to housing shortages.

Accepted Answer

A) True 
 B)False

Question 15

Price ceilings may be used on a selective basis to

Accepted Answer

A) Control inflation in the economy 
B) Make a good cheaper to produce 
C) Boost the income of firms 
D) Make a good accessible to all income levels 
E) Increase workers' incomes 
A) Control inflation in the economy 
B) Make a good cheaper to produce 
C) Boost the income of firms 
D) Make a good accessible to all income levels 
E) Increase workers' incomes

Question 16

The additional revenue a firm receives as a result of selling an additional unit of output is called

Accepted Answer

A) Price 
B) Profit 
C) Total revenue 
D) Marginal revenue 
E) Marginal revenue product 
A) Price 
B) Profit 
C) Total revenue 
D) Marginal revenue 
E) Marginal revenue product

Question 17

Rent controls create profit incentives to increase the supply of rental housing.

Accepted Answer

A) True 
 B)False

Question 18

The Following Questions Refer to the graph below.  
-If rent is controlled at $600,the quantity of rental housing supplied will be

Accepted Answer

A) 0 
B) 30 
C) 40 
D) 50 
E) More than 50 
A) 0 
B) 30 
C) 40 
D) 50 
E) More than 50

Question 19

The purpose of a price ceiling may be to hold down

Accepted Answer

A) Inflation 
B) Unemployment 
C) Interest rates 
D) Wages 
E) All of the above 
A) Inflation 
B) Unemployment 
C) Interest rates 
D) Wages 
E) All of the above

Question 20

Teenagers are the group most likely to work for minimum wagE.

Accepted Answer

A) True 
 B)False

All U.S.workers are covered under the U.S.minimum wage law.

Which of the following is true of the U.S.minimum wage over the 1980s and 1990s?

The U.S.minimum wage did not change throughout the 1980s and 1990s.

The minimum wage in 2008 was approximately 37% of average earnings.

An increase in the wage from $6 per hour to $6.50 per hour causes a worker to increase her hours worked from 40 to 45 hours per week.For this worker,which effect dominates?

A price ceiling must be set above equilibrium to have any effect on the market for housing.

Given that a firm is selling its product in a competitive market,meaning that its marginal revenue is constant,what would the Law of Diminishing Returns to labor inputs imply about the demand for labor?

If a worker works more as the wage increases,the substitution effect is dominating.

Rent control laws may lead to which of the following unintended effects?

In the short-run,who "wins" from rent control laws?

The first U.S.minimum wage was set at 25 cents an hour.

The Following Questions Refer to the graph below. -If the wage rate is $10,what is the quantity of labor demanded?

The minimum wage is 100% of the poverty level.

Rent controls lead to housing shortages.

Price ceilings may be used on a selective basis to

The additional revenue a firm receives as a result of selling an additional unit of output is called

Rent controls create profit incentives to increase the supply of rental housing.

The Following Questions Refer to the graph below. -If rent is controlled at $600,the quantity of rental housing supplied will be

The purpose of a price ceiling may be to hold down

Teenagers are the group most likely to work for minimum wagE.

Alleviating Human Misery: The Role of Economic Reasoning

Economic Systems, Resource Allocation, and Social Well-Being: Lessons From Chinas Transition

Pollution Problems: Must We Foul Our Own Nests

Economics of Crime and Its Prevention: How Much Is Too Much

The Economics of Education: Crisis and Reform

Poverty Problems and Discrimination: Why Are so Many Still so Poor

The Economics of Monopoly Power: Can Markets Be Controlled

The Economics of Professional Sports: What Is the Real Score

Competition in the Global Market-Place: Should We Protect Ourselves From International Trade

Economic Growth: Why Is the Economic Road so Bumpy

Money,Banking and the Financial System: Old Problems With New Twists

Unemployment and Inflation: Can We Find a Balance

Government Spending,Taxation,and the National Debt: Who Wins and Who Loses

Social Security and Medicare: How Secure Is Our Safety Net for the Elderly

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Exam 3: Government Control of Prices in Mixed Systems: Who Are the Winners and Losers

All U.S.workers are covered under the U.S.minimum wage law.

Which of the following is true of the U.S.minimum wage over the 1980s and 1990s?

The U.S.minimum wage did not change throughout the 1980s and 1990s.

The minimum wage in 2008 was approximately 37% of average earnings.

An increase in the wage from $6 per hour to $6.50 per hour causes a worker to increase her hours worked from 40 to 45 hours per week.For this worker,which effect dominates?

A price ceiling must be set above equilibrium to have any effect on the market for housing.

Given that a firm is selling its product in a competitive market,meaning that its marginal revenue is constant,what would the Law of Diminishing Returns to labor inputs imply about the demand for labor?

If a worker works more as the wage increases,the substitution effect is dominating.

Rent control laws may lead to which of the following unintended effects?

In the short-run,who "wins" from rent control laws?

The first U.S.minimum wage was set at 25 cents an hour.

The Following Questions Refer to the graph below. -If the wage rate is $10,what is the quantity of labor demanded?

The minimum wage is 100% of the poverty level.

Rent controls lead to housing shortages.

Price ceilings may be used on a selective basis to

The additional revenue a firm receives as a result of selling an additional unit of output is called

Rent controls create profit incentives to increase the supply of rental housing.

The Following Questions Refer to the graph below. -If rent is controlled at $600,the quantity of rental housing supplied will be

The purpose of a price ceiling may be to hold down

Teenagers are the group most likely to work for minimum wagE.

Alleviating Human Misery: The Role of Economic Reasoning

Economic Systems, Resource Allocation, and Social Well-Being: Lessons From Chinas Transition

Pollution Problems: Must We Foul Our Own Nests

Economics of Crime and Its Prevention: How Much Is Too Much

The Economics of Education: Crisis and Reform

Poverty Problems and Discrimination: Why Are so Many Still so Poor

The Economics of Monopoly Power: Can Markets Be Controlled

The Economics of Professional Sports: What Is the Real Score

Competition in the Global Market-Place: Should We Protect Ourselves From International Trade

Economic Growth: Why Is the Economic Road so Bumpy

Money,Banking and the Financial System: Old Problems With New Twists

Unemployment and Inflation: Can We Find a Balance

Government Spending,Taxation,and the National Debt: Who Wins and Who Loses

Social Security and Medicare: How Secure Is Our Safety Net for the Elderly

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