APE 48
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First Name *
Last Name *
SCHOOL email address *
Class Period *
1.  What two factors affect the demand for labor? *
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2.  How does MRP affect the demand for labor? *
EXPLAIN
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3.  Why is the demand for labor downward sloping? *
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4.  What determines the market supply of labor? *
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5.  Why is the market supply curve for labor upward sloping? *
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6.  What is the equilibrium wage in this labor market? *
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7. How many workers will be hired in this labor market? *
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8. If a minimum-wage law raises the minimum wage to $4.00 an hour, what quantity of labor will be supplied? *
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9. At a minimum wage of $4.00 an hour, what quantity of labor will be demanded? *
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10. How many workers would be laid off or would lose their jobs because of this minimum wage? *
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11. How many workers entered the labor force seeking a job because of this minimum wage? *
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12. If the demand for labor were more inelastic, would more or fewer workers lose their jobs because of this minimum wage? *
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13. Would skilled or unskilled workers be more likely to lose their jobs because of a minimum-wage law? *
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14. Who benefits from the minimum wage? *
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15. Who is hurt by the minimum wage? *
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16. Do you favor a higher minimum wage? Why or why not? *
Explain
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