Question

1. Generally speaking, U.S. labor demand has historically _____ over time; U.S. labor supply has historically _____ over time.

Group of answer choices

increased; increased

decreased; increased

decreased; decreased

increased; decreased

2. If a decrease in the minimum wage causes the market wage to decrease, then

Group of answer choices

the quantity of labor supplied will decrease and the quantity of labor demanded will increase

the quantity of labor supplied will stay constant and the quantity of labor demanded will increase

the quantity of labor supplied will increase and the quantity of labor demanded will decrease

the quantity of labor supplied will decrease and the quantity of labor demanded will increase

3. Suppose an industry operates under conditions of perfect competition. The demand and supply curves for the workers who make the final product are given in the table.

Wage per day	Workers demanded	Workers supplied
$280	1,000	5,500
$220	1,500	4,500
$160	2,000	3,500
$100	2,500	2,500
$40	3,000	1,500

The equilibrium wage for the workers is

Group of answer choices

$20 per day

$40 per day

$80 per day

$100 per day

4. Suppose an industry operates under conditions of perfect competition. The demand and supply curves for the workers who make the final product are given in the table.

Wage per day	Workers demanded	Workers supplied
$280	1,000	5,500
$220	1,500	4,500
$160	2,000	3,500
$100	2,500	2,500
$40	3,000	1,500

The equilibrium number of employees in the industry is

Group of answer choices

6,500

2,500

5,000

5,500

5. Aside from establishing a minimum wage, which of the following is another way the government could increase wages for workers in the renewable energy industry?

Group of answer choices

raise the demand for oil and natural gas workers

subsidize businesses that hire renewable energy workers

increase the supply of renewable energy workers

impose an earned income tax directly on renewable energy workers

Answer 1

1. Option 2. With the increase in economic growth, the demand and supply of labor both has increased
2. Option 4. As wages and quantity demanded of labor are inversely related. Wages and quantity supplied of labor are directly related
3. Option 4. It is at the intersection of labor demand and supply
4. Option 2. As demand equals supply
5. Option 2. As this would motivate industries to hire more