Federal Reserve Bank of Boston Economic Quiz
Employment and Earnings
1. You are a nurse and you work in Laborville, a remote small town with only one hospital. The labor market for nurses in Laborville is best described as:
2. How do employment and wages in this market compare to those in Nurseville, an identical town with ten hospitals?
Laborville's wages are higher, but employment is lower.
Laborville's wages are lower, but employment is higher.
Both employment and wages are higher in Laborville.
Both employment and wages are lower in Laborville.
3. What are the welfare implications of the above outcome?
Workers are better off than in a competitive market.
Workers are worse off than in a competitive market.
Worker welfare is not affected.
Worker welfare is equal to the deadweight loss of monopoly.
4. Which of the below economists, if any, find empirical evidence consistent with the claim that raising minimum wages is likely to increase employment?
Blanchflower and Modigliani.
Card and Krueger.
Friedman and Schwartz.
None of the above.
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Economic quiz written by: Radoslav Raykov - January 20, 2003
Views expressed in the economic quiz are those of the individual author.