Question

QUESTION 8

1. In a no-skilled labor market a government wants workers to earn higher wage. So, the government imposes a minimum wage law. If the minimum wage imposed is lower than the market equilibrium wage, then

   		a. the quantity demanded of labor will exceed the quantity supplied.
   		b. the quantity supplied of labor will exceed the quantity demanded.
   		c. the minimum wage will not be binding.
   		d. workers will get pay lower than before.

10 points   

QUESTION 9

1. A microeconomist — as opposed to a macroeconomist — might study

   		a. the effect of a national healthcare program on the nation’s unemployment rate.
   		b. the effect of new regulations on telecommunication industry.
   		c. the effect of changes in interest rates on gross domestic product.
   		d. the growth rate of production in the economy.

10 points   

QUESTION 10

1. High-school athletes who skip college to become professional athletes

   		a. obviously do not understand the value of a college education.
   		b. usually do so because they cannot get into college.
   		c. understand that the opportunity cost of attending college is very high.
   		d. are not making a rational decision since the marginal benefits of college outweigh the marginal costs of college for high-school athletes.

10 points   

QUESTION 11

1. In a no-skilled labor market a government wants workers to earn higher wage. So, the government imposes a minimum wage law. The minimum wage imposed exceeds the market equilibrium wage, then

   		a. the quantity demanded of labor will exceed the quantity supplied.
   		b. the quantity supplied of labor will exceed the quantity demanded.
   		c. the minimum wage will not be binding.
   		d. there will be no unemployment.

Answer 1

8. c. the minimum wage will not be binding..

9. b. the effect of new regulations on telecommunication industry.

10. c. understand that the opportunity cost of attending college is very high.

11. b. the quantity supplied of labor will exceed the quantity demanded.