Exam 18: Using Input Market Analysis

Use the following figure to answer the question : Figure 18-2 : shows the demand and supply curves of labor.A per-unit tax imposed on the wage income of the employees shifts the supply curve of labor upward. -In Figure 18-2,as a result of a per-unit tax:

Employers sometimes reduce the fringe benefits provided to workers when the government sets a minimum wage in the labor market.Due to this:

Which of the following factors determines the extent of the fall in the net-of-tax wage rate after the imposition of a payroll tax?

Provide a self-interested explanation for why labor unions spend a lot of time and money lobbying for increases in minimum wage mandates and for legislated "living wage" ordinances even though their members earn far more than the proposed wages.

Use the following figure to answer the question : Figure 18-3 : shows the impact of immigration on the labor market of a country.Immigration in shifts the labor supply curve from S to S'. -Refer to Figure 18-3.The total income of the residents of the country increases by the area _____ post immigration.

Use the following figure to answer the question : Figure 18-2 : shows the demand and supply curves of labor.A per-unit tax imposed on the wage income of the employees shifts the supply curve of labor upward. -According to Figure 18-2,the proportion of the per-unit tax paid by the employers is:

What is the long run effect of a pay-as-you-go Social Security program on the gross domestic product [GDP] of a country?

One adverse effect of the pay-as-you-go system of funding Social Security is that:

An employer's cartel will seek to:

Use the following figure to answer the question : Figure 18-2 : shows the demand and supply curves of labor.A per-unit tax imposed on the wage income of the employees shifts the supply curve of labor upward. -Refer to Figure 18-2.The per-unit tax is this figure is being represented by the distance:

The real burden of a social security tax would be:

Which of the following is a true impact of a Social Security program on the labor market?

The U.S.Social Security system:

Use the following figure to answer the question : Figure 18-3 : shows the impact of immigration on the labor market of a country.Immigration in shifts the labor supply curve from S to S'. -Refer to Figure 18-3.Post immigration the earnings of the native laborers in the country declines by the area:

Use the following figure to answer the question : Figure 18-1 : shows the demand and supply of unskilled labor that determines the equilibrium wage rate in the labor market.The minimum wage rate at $5.15 is higher than the equilibrium wage rate at $4. -Refer to Figure 18-1.The increase in the number of workers looking for work in this market due to the imposition of a $5.15 minimum wage is _____.

The minimum wage law is not an effective instrument for fighting poverty because:

Which of the following facts indicate that the official wage paid by the National Collegiate Athletic Association [NCAA] to the athletes is below the market-clearing level?

Which of the following is not a consequence of the minimum wage law?

The disemployment effect of a minimum wage is greater the:

Which of the following is true of an efficiency wage?