Econ 2100 Sample Questions 2 October 4 2010

Econ 2100 Sample Questions 2 October 4 2010 - Economics...

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Economics 2100. Fall 2010. Vivek Ghosal. Sample Questions 2 MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) When the Federal Government announces a new minimum wage, individual States: A) can restrict the supply of labor in their State to attain the Federal minimum wage level. B) have to set a minimum wage higher than the Federal level. C) are free to set any minimum wage they like. D) have to set a minimum wage equal to or higher than the Federal level. 2) In the short run, the supply of low - skilled labor will most likely be A) perfectly elastic. B) perfectly inelastic. C) more elastic than in the long run. D) less elastic than in the long run. 3) An effective minimum wage is a price A) ceiling that results in a shortage of low - skilled labor. B) ceiling that results in a surplus of low - skilled labor. C) floor that results in a shortage of low - skilled labor. D) floor that results in a surplus of low - skilled labor. 4) For Qs. 4 and 5. In the figure above, D and S represent the demand and supply curves for labor. A shift from D 0 to D 1 could be caused by A) imposing a minimum wage of $4.00. B) imposing a minimum wage of $5.00. C) introducing labor - saving technology. D) retraining workers. 1
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5) Figure above . Imposing a minimum wage of $6 per hour will A) increase employment from 20 to 40 million hours per year. B) increase employment from 30 to 40 million hours per year. C) decrease employment from 40 to 20 million hours per year. D) decrease employment from 30 to 20 million hours per year. 6) A price floor set below the equilibrium price A) restricts the quantity demanded but not the quantity supplied. B) restricts the quantity supplied but not the quantity demanded. C) restricts both the quantity demanded and the quantity supplied. D) has no effect. 7) In the 2001 article, Carrington and Fallick find that: A) Hispanics men have the highest likelihood of ending up in a "minimum wage career". B) African - Americans are more likely to end up in a "minimum wage career". C) Women are less likely to end up in a "minimum wage career". D) Asian men and women are more likely to end up in a "minimum wage career". 8) The 2004 article on California minimum wages noted that about ________ Californians earn minimum wages. A) 10 million B) 1.4 million C) 350,000 D) 15 million 9) In the 2004 article on California minimum wages a comment was made: "How can anyone live on $6.75 and no healthcare? It's absolutely shameful," Burton said. "This is the type of stuff we'd expect out of George Bush and not California's governor. We're seeing what kind of values they share."
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Econ 2100 Sample Questions 2 October 4 2010 - Economics...

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