1. Why wages differFor each of the scenarios in the following table, indicate the most likely reason for the difference in earnings.ScenarioTwo automotive technicians have the same amount of schooling and workexperience, but earn different wages. The first works the day shift for anauto manufacturer factory for an annual wage of $52,000 per year, andthe second works the night shift for the same company for an annualwage of $63,000 per year.An economics consulting firm hires Carlos, a recent PhD graduate ineconomics, and pays him an annual wage of $80,000. It also hires Jake, arecent master's degree graduate in economics, and pays him an annualwage of $63,000.Major league hockey goalies earn more than minor league hockey goalies.Differences inHuman CapitalCompensatingDifferentialODifferencesin AbilityOOLaborUnionsOOO

Workers can get different wages based on their ability, age, gender, ethnicity etc. There are wage…

Answered: 1. Why wages differ For each of the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1. Why wages differ For each of the scenarios in the following table, indicate the most likely reason for the difference in earnings. Differences in Human Capital Compensating Differential Differences in Natural Ability Labor Unions Scenario Major league hockey goalies earn more than minor league hockey goalies. A law firm hires Frances, a recent graduate from law school, and pays her an annual wage of $40,000. It also hires Caroline, a second-year law student, and pays her an annual wage of $30,000. Frances and Caroline were born in the same country, attended the same university, and studied in the same graduate program. Two security guards have the same amount of schooling and work experience, but earn different wages. One of them works for a prison and earns an annual wage of $51,000 per year. Another works for a museum and earns an annual wage of $32,000 per year.
7. Study Questions and Problems #6 Answer the following question assuming the labor market for loggers is perfectly competitive. If the price of a substitute for wood such as plastic or metal decreases, wages of loggers will because the marginal revenue product of loggers will
Ab 6 Economics To construct a house, Eric uses power tools (qK) and hires workers (qL). Power tool rental is $10 per hour, while each worker can be hired at a rate of $30 per hour. If the wage rate falls to $20, what is the value of the slope of the new isocost curve?
Q26 Assume that Paul Bocuse's restaurant in Lyon is hiring labour in an amount such that the MRC of the last worker is $10 and his MRP is $15. On the basis of this information, we can say that Multiple Choice profits will be increased by hiring additional workers. the Paul Bocuse restaurant is maximizing profits. the Paul Bocuse restaurant is minimizing losses. profits will be increased by hiring fewer workers. marginal revenue product must exceed average revenue product.
Use the table to answer the question that follows. Quantity of Labor MP of Labor Quantity of Capital MP of Capital 1 30 1 50 2 25 2 40 3 20 3 35 4 15 4 15 5 10 5 5 What combination of labor and capital would satisfy the input hiring rule that minimizes the cost of production, if the price of labor is $5 and the price of capital is $10? A-1 unit of labor; 3 units of capital. B-2 units of labor; 2 units of capital C-3 units of labor; 2 units of capital. D-4 units of labor; 4 units of capital E-5 units of labor; 1 unit of capital
What is the difference between a wage and a salary? A. A wage is generally a specific amount of money per hour paid to a worker. A salary is a flat rate an employer pays for an individual’s work over the course of a longer period of time. B. A wage is a flat rate an employer pays for an individual’s work over the course of a longer period of time. A salary is generally a specific amount of money per hour paid to a worker. C. A wage is time worked in excess of normal working hours. A salary is a flat rate an employer pays for an individual’s work over the course of a longer period of time. D. A wage is generally a specific amount of money per hour paid to a worker. A salary is time worked in excess of normal working hours.
Illustrate and examine how the individual supply of labor curve demonstrate the way an individual divides his/her time between work and leisure
Bob White argues that if his wage went up from $10/hour to $20/hour he would still be able to pay rent and feed his family even if he worked half as many hours. So, if his wage increased he would want to work proportionally less. What is strange about Bob White's labor supply curve? it is very elastic it is very inelastic it slopes down it is vertical
Suppose initially that immigrant labor and native-born labor are complementary resources. Explain how a substantial immigration might change the demand for native-born workers, altering their wages. (Review the relevant portion of Chapter 12 if necessary to help answer this question.) Next, suppose that new immigrant labor and previous immigrant labor (not native-born) are substitute resources. Explain how a substantial immigration of new workers might affect the demand for previous immigrants, altering their wages.
You are given a scenario where this a change in a factor of production or a change in demand for an item. You need to explain in sentence form how this would change demand for labor. 1. Apple develops the iPhone and demand for it surges as people realize the benefits of this improved technology. You manufacture flip phones.
Illustrate and examine how the individual supply of labor curve demonstrates the way an individual divides his/her time between work and leisure.
The figure given below shows a backward-bending labor supply curve for an individual. Along which part of the labor supply curve in the figure below does the income effect of a wage change outweigh the substitution effect? Figure 12.1 Wage b Quantity of labor Between points a and b Between points a and c Between points b and c Between points c and d Between points b and d О О

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