EBK FOUNDATIONS OF ECONOMICS
8th Edition
ISBN: 8220103632225
Author: PARKIN
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 7, Problem 6MCQ
To determine
To choose: The appropriate option to fill in the blanks in the given statement.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
An increase in the minimum wage will tend to cause which of the following to occur?
Select one:
a. an increase in the size of the surplus of labor
b. a rightward shift in the supply of labor
O c. a leftward shift in the demand for labor
O d. a reduction in the unemployment rate
Assume that as the economy booms, the demand for business and consumer loans rises significantly, while the supply of funds and loans remains constant. As a result, the market interest rate for business and consumer loans rises to 20% per year. The government implements a ceiling on interest rates of 15% a year and as a result...
Group of answer choices
The quantity demanded of business and consumer loans rises, while the quantity supplied falls and a surplus occurs
A greater number of business and consumer loans are made at a lower interest rate than previously.
The demand of business and consumer loans rises, while the supply falls and a shortage occurs
The quantity demanded of business and consumer loans rises, while the quantity supplied falls and a shortage occurs
The effect of a change in the wage rate on the number of labor hours that firms are willing and able to hire will be smaller the
a. less elastic is the demand for labor curve.
b. less elastic is the supply of labor curve.
C. more elastic is the demand for labor curve.
d. more elastic is the supply of labor curve.
Chapter 7 Solutions
EBK FOUNDATIONS OF ECONOMICS
Ch. 7 - Prob. 1SPPACh. 7 - Prob. 2SPPACh. 7 - Prob. 3SPPACh. 7 - Prob. 4SPPACh. 7 - Prob. 5SPPACh. 7 - Prob. 6SPPACh. 7 - Prob. 7SPPACh. 7 - Prob. 8SPPACh. 7 - Prob. 9SPPACh. 7 - Prob. 10SPPA
Ch. 7 - Prob. 11SPPACh. 7 - Prob. 1IAPACh. 7 - Prob. 2IAPACh. 7 - Prob. 3IAPACh. 7 - Prob. 4IAPACh. 7 - Prob. 5IAPACh. 7 - Prob. 6IAPACh. 7 - Prob. 7IAPACh. 7 - Prob. 8IAPACh. 7 - Prob. 9IAPACh. 7 - Prob. 1MCQCh. 7 - Prob. 2MCQCh. 7 - Prob. 3MCQCh. 7 - Prob. 4MCQCh. 7 - Prob. 5MCQCh. 7 - Prob. 6MCQCh. 7 - Prob. 7MCQCh. 7 - Prob. 8MCQ
Knowledge Booster
Similar questions
- Question 8888 The alternative policy is to introduce a tax of $3,000 on the sale of newcars. Under this policy, determine the price paid by consumers, the price received byfirms, and the number of new cars sold. Finally, determine what share of the tax ispaid for my consumers and what share is paid for by firms. Remember that we can simulate a tax by shifting the supply curve vertically by the amount of the tax. Full explain this question and text typing work only thanksarrow_forwardAn increase in the minimum wage causes the quantity supplied of labor to of labor. labor and thus causes a O increase; decrease : surplus O decrease: increase: shortage- O decrease: increase: surplus O increase: decrease; shortage s the quantity demanded ofarrow_forward4A. Construct a labor market with perfectly inelastic demand that is kinked at wage w*. 4B. Construct a labor market with perfectly inelastic supply that is kinked at wage w*. 4C. Construct a labor market with perfectly elastic supply that is double-kinked at wage w*. Answer all otherwise dounvotearrow_forward
- The table shows the market for house painters in New Mexico. a. If New Mexico introduces a strictly enforced minimum wage for house painters of $5.00 an hour, house painters are employed. This causes OA. a surplus of labor OB. a shortage of labor OC. neither a surplus nor a shortage of labor CAIR and thus, house painters are unemployed. b. If New Mexico introduces a strictly enforced minimum wage for house painters of $6.50 an hour, house painters are employed. This causes OA. a surplus of labor OB. a shortage of labor O c. neither a surplus nor a shortage of labor and thus, house painters are unemployed. Wage rate (dollars per hour) 5.00 5.50 6.00 6.50 7.00 7.50 Quantity demanded Quantity supplied (house painters) 300 250 200 150 100 50 150 175 200 225 250 275arrow_forwardFigure: Price Floors Wages $20 14 O d' B O b. area C Oc area F Demand 5,000 8,000 12.000 Q of Labor Supply 11,000 Suppose the town of Drippling Springs enacts a wage floor of $20. What is the lost consumer surplus from the wage floor? a, area A d. area ABCarrow_forwardSuppose that the market for labor is initially in equilibrium. An increase in the price of output will cause the equilibrium wage a. and the equilibrium quantity of labor to fall. b. and the equilibrium quantity of labor to rise. c. to rise and the equilibrium quantity of labor to fall. d. to fall and the equilibrium quantity of labor to rise.arrow_forward
- 'The production function of a small firm that produces t-shirts is given by the table below . 10 12 14 16 18 20 22 24 18 33 57 72 84 93 99 102 102 99 For each L, solve for AP and MP. Round-up vour answers to two decimals: Represent VOur answers On table: No need to show the solutions. BJ What would be the output elasticities of labor? Round-Up vour answers t0 twO decimals. If the firm is hiring 16 and 12 workers, interpret the computed € values C Identify the range of number of laborers under increasing marginal returns diminishing marginal returns, and negative marginal returns. D Explain why the firm experiences diminishing marginal returns. EJ If the firm sells each t-shirt for P75 and each worker receives wage of PA5O per day. what is the optimal number of laborers t0 hire to maximize profits?'arrow_forwardD. Bill's Diner 5. Which of these would cause a shortage in labor? * A. the supply of workers exceeds the demand O B. the demand for workers exceeds the supply O C. the number of workers equals the demand for labor O D. the supply curve for the product a business produces shifts to the left 6. If wages decreased in the labor market, what likely caused it?arrow_forwardThe minimum wage is set above the equilibrium wage rate. Does the minimum wage create inefficiency? Select one: A. yes B. no C. only if the supply of labor is perfectly inelastic O D. only if the supply of labor is perfectly elastic O E. only if employment exceeds the efficient amount Demand 5 10 15 20 25 30 Quantity (cups per hour) The figure above shows the demand curve for Starbucks latte. In the figure above, the demand is elastic in the range of prices between Select one: O A. $3.50 and $4.50 per cup. B. $1.75 and $2.75 per cup. C. $2.00 and $4.00 per cup. D. $2.50 and $3.50 per cup. O E. $1.00 and $2.00 per cup. Other goods (units per day) 70 60 50 40 30 20 10 PPF Pizza (thousands per day) Marginal benefit and marginal cost (units of other goods per pizza) 20 MC 15 10 MB 4 8 Pizza (thousands per day) 2 4 6. Pizza (thousands per day) The figure above shows the PPF, marginal cost curve, and marginal benefit curve for pizza. In the figure above, when 4,00o pizzas are produced, the…arrow_forward
- A new law requires employers to provide health benefits to all workers who are employed more than 10 hours per week. This law results in a $3 per hour increase in the cost of the equilibrium hiring workers. The law is likely to the demand for labor and wage paid to workers. O increase: decrease increase : increase decrease: decrease decrease: increase ASUSarrow_forwardWhy are the factors that shift the demand for a product different from the factors that shift the demand for labor? Why are the factors that shift the supply of a product different from those that shift the supply of labor?arrow_forward13. Which is the most likely result of imposing a minimum wage above a market's equilibrium wage? a. The quantity supplied of labour will be greater than the quantity demanded of labour., and unemployment will осcur. b. The quantity demanded of labour will1 be greater than the quantity supplied of labour, and unemployment will осcu. c. The quantity supplied of labour will be greater than the quantity demanded of labour, and a shortage of workers will occur. d. The quantity demanded of labour will be greater than the quantity supplied of labour, and a shortage of workers will occur.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStax
Essentials of Economics (MindTap Course List)EconomicsISBN:9781337091992Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax
Essentials of Economics (MindTap Course List)
Economics
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:Cengage Learning