75.       Suppose the supply of economics and English professors is the same, but the demand for economics professors is greater.  If professors are paid the same wage, regardless of the discipline they teach, and if there is a shortage of professors in both fields, then

            a.         the shortage will be greater for English professors.

            b.         the shortage will be greater for economics professors.

            c.         both fields will have an equal shortage.

            d.         it is impossible to determine which field will have a greater shortage.         

76.       If all college professors are paid the same wage, regardless of the subject they teach, then

            a.         each market for college professors (by discipline) must be in equilibrium.

            b.         some markets for college professors (by discipline) will most likely have shortages while others will likely have surpluses.

            c.         all markets for college professors (by discipline) will likely have shortages.

            d.         all markets for college professors (by discipline) will likely have surpluses.

77.       When a change in the law decreases the sellers’ costs, a _______ shift of the ________ curve will tend to occur.

            a.         rightward; supply

            b.         rightward; demand

            c.         leftward; supply

            d.         leftward; demand

78.       Refer to Exhibit 4-7.  The number of persons who want to work at the minimum wage is

            a.         N3.

            b.         N1.

            c.         N2.

            d.         N2 – N1.

79.       Refer to Exhibit 4-7.  How many fewer persons work in the unskilled labor market at the minimum wage (WM) than at the equilibrium wage (W1)?

            a.         N2 – N1  persons

            b.         N1 – N3  persons

            c.         N2 – N3 persons

            d.         N3  persons

            e.         none of the above

80.       Refer to Exhibit 4-7.  How many persons work at the minimum wage?

            a.         N2

            b.         N1

            c.         N3

            d.         N1  + N3

81.       An effective minimum wage law can be expected to

            a.         clear the market for unskilled workers.

            b.         increase employment for some affected workers.

            c.         increase the number of firms in those industries where the law is effective.

            d.         reduce the hours worked for some unskilled workers.

            e.         all of the above

82.       If the minimum wage is set above the equilibrium wage, then

            a.         more people will work than at the equilibrium wage.

            b.         the same number of people will work as at the equilibrium wage.

            c.         fewer people will want to work than at the equilibrium wage.

            d.         there will be fewer labor hours purchased by employers than at the equilibrium wage.

            e.         none of the above

83.       At the minimum wage (above equilibrium wage),

a.         all individuals who end up working are paid less than if they were paid the equilibrium wage.

b          none of the workers will lose there jobs or find themselves working fewer hours.

c          none of the individuals who end up working are paid more than if they were paid the equilibrium wage.

d          there will be fewer people working (or fewer labor hours demanded) than at the equilibrium wage.

e.         none of the above

84.       Someone says, “Even though the equilibrium wage rate is $6 an hour in the unskilled labor market, if we impose a minimum wage of $7 an hour, no one currently working will lose his or her job.”  This person must believe that the

            a.         demand curve for unskilled labor is vertical.

            b.         demand curve for unskilled labor is downward-sloping.

            c.         firms that hire unskilled laborers are earning high profits.

            d.         firms that hire unskilled laborers have relatively low costs.

            e.         none of the above.