Question 1

The minimum wage is a relatively blunt instrument with which to reduce poverty because

Accepted Answer

A)  only about half the labor force is covered by the minimum wage. 
B)  only about half the employers comply with the law. 
C)  most workers whose wages are affected by minimum wage increases do not live in poor families. 
D)  minimum wage increases cause large increases in unemployment. 
A)  only about half the labor force is covered by the minimum wage. 
B)  only about half the employers comply with the law. 
C)  most workers whose wages are affected by minimum wage increases do not live in poor families. 
D)  minimum wage increases cause large increases in unemployment.

Question 2

Some types of technological change (e.g.,mass production of personal computers or miniaturization of components)reduce the cost of capital.Use the concept of cross-wage elasticity to discuss how such technological change could be good for some types of workers and bad for other types of workers.

Accepted Answer

If the cost of capital decreases,this wi

Question 3

The short run own-wage labor demand elasticity

Accepted Answer

A)  includes only part of the scale effect. 
B)  includes only part of the substitution effect. 
C)  includes both scale and substitution effects. 
D)  includes all the scale effect. 
A)  includes only part of the scale effect. 
B)  includes only part of the substitution effect. 
C)  includes both scale and substitution effects. 
D)  includes all the scale effect.

Question 4

Since the minimum wage was first legislated,a concern has been that it will reduce employment among groups it is intended to benefit.Despite this concern,adverse employment consequences of changes in the minimum wage have been relatively small.Use a two sector model to explain why adverse employment effects of a minimum wage increase might be expected to be small.

Accepted Answer

The student should provide two side-by-s

Question 5

For a given increase in the minimum wage,which of the following would likely result in a smaller decrease in teenage employment?

Accepted Answer

A)  Teenage workers are close substitutes with older workers who are paid more than the minimum wage. 
B)  Teenagers produce goods that have a high price elasticity of demand. 
C)  Teenager labor represents a small fraction of the cost of making goods. 
D)  Teenagers are paid so little that the minimum wage increases their wage more. 
A)  Teenage workers are close substitutes with older workers who are paid more than the minimum wage. 
B)  Teenagers produce goods that have a high price elasticity of demand. 
C)  Teenager labor represents a small fraction of the cost of making goods. 
D)  Teenagers are paid so little that the minimum wage increases their wage more.

Question 6

Other things equal,which of the following will have the most elastic own-wage elasticity of demand?

Accepted Answer

A)  A steel firm with one plant in California. 
B)  All steel firms in California. 
C)  All steel firms in the United States. 
D)  All steel firms in the world. 
A)  A steel firm with one plant in California. 
B)  All steel firms in California. 
C)  All steel firms in the United States. 
D)  All steel firms in the world.

The minimum wage is a relatively blunt instrument with which to reduce poverty because

Some types of technological change (e.g.,mass production of personal computers or miniaturization of components)reduce the cost of capital.Use the concept of cross-wage elasticity to discuss how such technological change could be good for some types of workers and bad for other types of workers.

The short run own-wage labor demand elasticity

For a given increase in the minimum wage,which of the following would likely result in a smaller decrease in teenage employment?

Other things equal,which of the following will have the most elastic own-wage elasticity of demand?

Introduction

Overview of the Labor Market

The Demand for Labor

Frictions in the Labor Market

Supply of Labor to the Economy: The Decision to Work

Labor Supply: Household Production, the Family, and the Life Cycle

Compensating Wage Differentials and Labor Markets

Investments in Human Capital: Education and Training

Worker Mobility: Migration, Immigration, and Turnover

Pay and Productivity: Wage Determination within the Firm

Gender,Race,and Ethnicity in the Labor Market

Unions and the Labor Market

Unemployment

Inequality in Earnings

The Labor-Market Effects of International Trade and Production Sharing

Filters

Exam 4: Labor Demand Elasticities

The minimum wage is a relatively blunt instrument with which to reduce poverty because

Some types of technological change (e.g.,mass production of personal computers or miniaturization of components)reduce the cost of capital.Use the concept of cross-wage elasticity to discuss how such technological change could be good for some types of workers and bad for other types of workers.

The short run own-wage labor demand elasticity

For a given increase in the minimum wage,which of the following would likely result in a smaller decrease in teenage employment?

Other things equal,which of the following will have the most elastic own-wage elasticity of demand?

Introduction

Overview of the Labor Market

The Demand for Labor

Frictions in the Labor Market

Supply of Labor to the Economy: The Decision to Work

Labor Supply: Household Production, the Family, and the Life Cycle

Compensating Wage Differentials and Labor Markets

Investments in Human Capital: Education and Training

Worker Mobility: Migration, Immigration, and Turnover

Pay and Productivity: Wage Determination within the Firm

Gender,Race,and Ethnicity in the Labor Market

Unions and the Labor Market

Unemployment

Inequality in Earnings

The Labor-Market Effects of International Trade and Production Sharing

Filters