Reading 15: Markets in Action LOS b习题精选 2010, statements, following, minimum

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LOS b: Describe labor market equilibrium and explain the effects and inefficiencies of a minimum wage above the equilibrium wage.

Which of the following statements about price floors and the labor market is least accurate?

A) In the long run, effective price floors lead to inefficiencies in production.

B) Setting a minimum wage above the equilibrium wage rate will lead to an excess supply of labor.

C) If a price floor is set below the equilibrium price, the quantity demanded will exceed the quantity supplied.

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If a price floor is set below the equilibrium price, it will have no effect on the quantity demanded or supplied. However, a price floor (minimum wage in the labor market) above the equilibrium price (wage rate in the labor market) will cause a surplus at the floor price. Inefficiencies result from a price floor because producers will divert resources to supply a larger quantity of the good, but consumers will demand a smaller quantity at the floor price.

 

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A minimum wage is an example of which of the following?

A) A price floor.

B) A price ceiling.

C) Rent controls.

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A minimum wage is an example of a price floor.

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A minimum wage set above the equilibrium minimum wage will most likely have which of the following effects?

A) There will be a shortage of workers.

B) Unemployment will rise.

C) It will have no effects.

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Firms will not employ all the workers who want to work at the imposed higher wage. Those who want to work at the higher wage but cannot find jobs will be counted as unemployed.

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Which of the following is least likely to be the result of a minimum wage?

A) There will be an abundance of low-skilled workers willing to work.

B) On-the-job training will be cut back.

C) Labor will be substituted for capital.

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Firms substitute capital for the “expensive” labor and use more than the economically efficient amount of capital.