USU-Intro To MacroEcon - Assignment 13

The combined effect of individual labor supply curves

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Unformatted text preview: the combined effect of individual labor supply curves results in a greater number of labor hours being supplied at a higher wage rate. 5. at high wages, people will decrease labor supply when wages rise further, and as a result make aggregate labor supply decrease. Question 4 (1 point) In the figure above, assume the labor market is at equilibrium with 30 workers and a wage rate of $5 per day. Then the government imposes a minimum wage of $10 per day. Which of the following is true? 1. 2. 3. 4. 5. Labor demand will decrease. The economy will remain in equilibrium. There will be a surplus of 20 workers. Labor supply will increase. There will be a shortage of 20 workers. Question 5 (1 point) In the figure above, which of the following could cause a shift from S 1 to S 2 ? 1. A government policy that restricts wages to $5 per day 2. An increase in the demand for labor 3. A change in preferences such that people increase their desire for leisure 4. An increase in the wage rate 5. An increase in the population Question 6 (1 point) In the figure above, the reason for the wage differential could be the fact that 1. 2. 3. 4. 5. market B consists of workers with less human capital. market B is unskilled labor. market A consists of workers with more human capital. market A is the market for a risky occupation. All of these. Question 7 (1 point) A compensating wage differential is a wage difference 1. that results because of a monopsony. 2. that makes up for the high risk or poor working conditions of a job. 3. that leads to more risks taken on the job. 4. attrib...
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