Question

1. The labor supply curve:

a. is made up of firms who want to hire workers at each given wage.

b. is made up of workers who want to work for firms at each given wage.

c. shows number of firms who are willing and able to hire workers at each given wage.

d. shows that the number of firms who want to hire workers decreases as the wage increases.

2. Unemployment insurance:

a. is an explanation for why wages do not reach equilibrium.

b. can affect how quickly people find jobs.

c. will not affect the natural rate of unemployment.

d. is a mandated federal policy all states must adhere to.

3. In the United States, the federal minimum wage in early 2016 was:

a. $7.25 per hour.

b. $6.50 per hour.

c. $8.00 per hour.

d. $7.73 per hour.

4. Supporters of minimum-wage legislation argue that:

a. workers deserve a basic standard of living.

b. it should be set below the market equilibrium wage.

c. some workers will become unemployed as a result of the minimum wage.

d. All of these are true.

5. If a country's income level is high:

a. it must have a high level of growth.

b. it usually has a high level of GDP per capita.

c. it must be well-endowed with natural resources.

d. All of these are true.

Answer 1

1. Ans. The labor supply curve : b. is made up of workers who want to work for firms at each given wage .

  The labour supply curve shows the relationship between wages and the quantity of labor supply by workers.

3. Ans. In the United States, the federal minimum wage in early 2016 was : a. $7.25 per hour .

4. Ans. Supporters of minimum-wage legislation argue that: a. workers deserve a basic standard of living .

​​​​   Including this, in support they also argued that; by earning minimum wage, they can live above the poverty line and can maintain a basic standard of living.

5. Ans. If a country's income level is high: b. it usually has a high level of GDP per capita.

High level of GDP per capita usually indicates high income level.

2. Ans. Unemployment insurance : b. can affect how quickly people find jobs.

Unemployment insurance can cause people to delay their job search and may discourage them from actively searching for work.

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