3 Using the information in the Table below answer the following questions: Quantry of labour demanded (billions of hours per year) 70 60 Real wage rate (2007 dollars per hour) 15 20 25 30 35 Real GOP (trillions of 2007 dollars per year) 3 9 14 18 21 50 40 30 Quantity of labour (billions of hours/year) 20 30 40 50 60 Quantity of labour supplied (billions of hours per year) 10 20 30 40 50 Quantity of NEW Labour Supplied (Billional a) Set up a Two-Tier Graph with the top table describes an economy's labour market and the second table describes its production function. Clearly showing and labeling Potential GDP which is equal to b) An increase in population changes quantity of labour supplied by 20 billion hours at each real wage rate. Fill in the Column in the above Table & Plot the new Supply Curve in your graph with the new Potential GDP is

3 Using the information in the Table below answer the following questions: Quantry of labour demanded (billions of hours per year) 70 60 Real wage rate (2007 dollars per hour) 15 20 25 30 35 Real GOP (trillions of 2007 dollars per year) 3 9 14 18 21 50 40 30 Quantity of labour (billions of hours/year) 20 30 40 50 60 Quantity of labour supplied (billions of hours per year) 10 20 30 40 50 Quantity of NEW Labour Supplied (Billional a) Set up a Two-Tier Graph with the top table describes an economy's labour market and the second table describes its production function. Clearly showing and labeling Potential GDP which is equal to b) An increase in population changes quantity of labour supplied by 20 billion hours at each real wage rate. Fill in the Column in the above Table & Plot the new Supply Curve in your graph with the new Potential GDP is

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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If the hourly wage is $11, which of the below statements is true? Table 18.2 Workers Total Revenue per Hour 1 $30 $50 3 $65 4 $75 $80
Use the figure below to answer the following question. Real wage rate (2002 dollars per hour) 25 LS 20 15 10 LD LDo O 50 100 150 200 250 300 Labour (billions of hours per year) From the figure, as a result of the rightward shift in the demand curve for labour from LDO to LD1, potential GDP , -- and potential GDP per hour of labour 1) increases; increases 2) decreases; increases 3) increases; decreases 4) decreases; decreases 5) increases; does not change
Figure 15: Returns to HE for men in work by subject and age Business Economics Engineering Communications Creative Arts Law Medicine English Age 30 Age 50 95% Cls Age 40 Age 60 It shows the returns to getting a degree in different subjects relative to the average wage of men who did A-levels but did not go to university. The new Minister of Universities has some ideas. She suggests: (a) Charging people who who get a 60% wage premium (eg women doing Economics) higher tuition fees (b) Charging people who get less than a 40% premium higher tuition fees (c) Charging everyone higher tuition fees. Evaluate each of these proposals in light of the competitive labour market model (holding labour demand constant). Do you think the proposal is a good idea? Why or why not? What will the effect be on the supply of different types of labour (eg non-graduates, female economists) resulting from each and thus on the wages people receive. Earnings Difference in Percent O 20 40 60 80 100120140
WAGE (Dollars per hour) 15 Labor Supply 12 0 200 400 600 Labor Demand 900 1000 QUANTITY (Thousands of workers) Graph Input Tool Labor Market Wage Rate (Dollars per hour) Labor Demanded (Thousands of workers) $11.1 260 Labor Supplied (Thousands of workers) 740 480 Surplus Labor (Thousands of workers) Labor Demand Shifters Tax Credit (Dollars per hour) ° ? Suppose the minimum wage in this economy is $11.10 per hour. An unemployed worker is defined as someone who is willing to work at the prevailing wage but is unable to find employment. Because the minimum wage lies above the equilibrium wage, it is binding, which means it is also the prevailing wage. If the wage is not allowed to fall below $11.10 per hour, the size of the unskilled labor force is workers are considered unemployed. The unemployment rate is defined as the percentage of unemployed workers in the labor force: Unemployment Rate = Unemployed Labor Force x 100 workers, and unskilled At a minimum wage of $11.10 per hour, the…
13. Consider this statement: "In the labor market, businesses supply jobs." Explain what is wrong with this statement, in your own words. Give an example of an accurate statement that could replace it.
2. Graphing demand for labor and computing the optimal quantity of labor demanded A company operates in a competitive market, selling each unit of output for a price of $20 and paying the market wage of $270 per day for each worker it hires. In the following table, complete the column for the value of the marginal product of labor (VMPL) at each quantity of workers. Labor Output (Units of output) Marginal Product of Labor (Units of output) Value of the Marginal Product of Labor (Dollars) (Number of workers) 0 0 20 1 20 19 2 39 18 3 57 15 4 72 12 5 84 On the following graph, use the blue points (circle symbol) to plot the firm's labor demand curve. Then, use the orange line (square symbols) to show 00000
Consider a company operating in a competitive market. The company sells units of output and receives a price of $30 per unit, and pays a daily market wage of $285 to each worker it employs. In the following table, complete the column for the value of the marginal product of labor (VMPL) at each quantity of workers. Value of the Marginal Product of Labor Labor Output Marginal Product of Labor (Number of workers) (Units of output) (Units of output) (Dollars) WAGE (Dollars per worker) 500 450 On the following graph, use the blue points (circle symbol) to plot the firm's labor demand curve. Then, use the orange line (square symbols) to show the wage rate. (Note: If you cannot place the wage rate at the level you want, move the two end points individually.) 400 Hint: Remember to plot each point halfway between the two integers. For example, when the number of workers increases from 0 to 1, the value of the marginal product for the first worker should be plotted with a horizontal coordinate…
gros profit per unit not including labour cost- $100 # Workers Output 1 20 2 36 3 48 4 56 5 60 6 62 If the wage rate is $1,000 a week, how many workers should the factory hire? If a surge in popularity for the factory’s brand allows them to raise the product price such that the gross profit rises to $150, how many workers will the factory hire now? Calculate the number of garments produced in each of the two cases above.
Ab 9 Economics
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21. How does increased immigration affect the labor market? How would the equilibrium wage and the equilibrium quantity of labor be affected?
c. Show the effect of each of the following events on the market for labour in the computer tablet manufacturing industry:(i) The government buys tablets for all university students. (ii) More university students graduate in engineering and computer science. (iii) Computer firms build new manufacturing factories. (iv) If the population of the country suddenly grew because of a large immigration, what would you expect to happen to wages? What would happen to the rents earned by the owners of land and capital?