Question 1 (1 point)

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Question 1

When the government mandates that firms supply a particular benefit, it is usually the case that

Question 1 options:

1)	the cost of providing the benefit is less than the worker's value of the benefit.

2)	employment will increase.

3)	the wage will increase.

4)	the wage will decrease by more than the cost of providing the benefit.

5)	the wage will decrease by less than the cost of providing the benefit.

Question 2 (1 point)

An increase in the level of the minimum wage in a competitive market can be predicted to:

Question 2 options:

1)	cause a decrease in total wages paid to covered workers if the labour demand curve is elastic.

2)	lead to an increase in measured unemployment in the covered sector.

3)	cause firms in the uncovered sector to raise wages.

4)	cause firms in the covered sector to increase employment.