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- (International labor movements) Consider two countries, Home and Foreign. Both countries use two factors of production, capital and labor, to produce only one good. The capital supply in each country and the technology of production are exactly the same. The marginal product of labor in each country depends upon employment as follows: MPL = 40- L Initially there are 20 workers employed at Home and 10 at Foreign. a. Compute algebraically the wage rate in both countries if labor is not allowed to move between countries. Show it in a graph. b. Compute algebraically the equilibrium wage rate and employment in both countries if labor is allowed to migrate from one country to the other. Explain the migration pattern. Show it in a graph.3.. Civil engineers in Tyler Texas all work at the only engineering firm in town. They can expect to earn $102,400 per year, but because the firm works on big highway projects that are uncertain, demand fluctuates. Every year there is a 50% chance they will lose their job and will have to move to another town to find another job elsewhere (where they will also earn $102,400). The cost of moving is $18,300 (so in a year where they move, they will only have a disposable income of $84,100). In Dallas, civil engineers lose jobs just as often, but they can always immediately find another job in such a big city without having to move. For all civil engineers, the utility from income is based on this utility function: U=√Disposable Income. Based on the above information, what is the annual wage paid to civil engineers in Dallas (assuming that income is the only determinant of utility and that labor supply adjusts so that a civil engineer's utility is the same everywhere)?5. Problems and Applications Q5 Economists use labor-market data to evaluate how well an economy is using its most valuable resource-its people. Two closely watched statistics are the unemployment rate and the employment-population ratio (calculated as the percentage of the adult population that is employed). Indicate what happens to the unemployment rate and the employment-population ratio in each of the following scenarios. Scenario A financial firm goes bankrupt and lays off its workers, who immediately start working in other financial firms. After an unsuccessful search, some laid-off workers decide to go back to school as full-time students. Numerous students graduate from college but cannot find work. A stock market crash leads to large-scale lay-offs of workers aged 55 and above, who decide to retire instead of looking for new jobs. Unemployment Rate Stays the same Stays the same Increases Increases Effect On... Employment-Population Ratio Stays the same Stays the same Decreases…
- 17. Economics: Labor Economics Thank you for your help and support Academic Agent!4. Marginal resource cost A company operates in a perfectly competitive market, selling each unit of output for a price of $30 and paying the market wage of $285 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 Marginal Product of Labor (Units of output) Value of the Marginal Product of Labor (Dollars) (Number of workers) (Units of output) 0 1 2 3 4 5 0 16 31 45 56 64 16 15 14 11 8 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. Line segments will automatically connect the points. (Note: If you cannot place the wage rate at the level you want, move the two end points individually.) 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…4. Competitive labor market equilibrium A company operates in a perfectly competitive market, selling each unit of output for a price of $30 and paying the market wage of $375 per day for each worker it hires. In the following table, complete the column for the marginal revenue product of labor (MRP) at each quantity of workers. Labor Input Total Output (Number of workers) (Units of output) Marginal Product Marginal Revenue Product (Units of output) (Dollars) WAGE RATE (Delars per day) 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. Line segments will automatically connect the points. (Note: If you cannot place the wage rate at the level you want, move the two end points individually.) 500 Hint: Remember to plot each point halfway between the two integers. For example, when the number of workers increases from 0 to 1, the marginal revenue product for the first worker…
- Microeconomicse 3 The cost of each item in the basket and the total cost of the basket are shown for 2019. Perform these same calculations for 2020 and 2021, and enter the results in the following table. Notebooks Calculators Large coffees Energy drinks Textbooks Total cost Price index Quantity in Basket 10 1 150 50 10 5 5 Price (Dollars) 5 100 1 2 100 5 5 Suppose the base year for this price index is 2019. 2019 Between 2019 and 2020, the CSPI increased by Cost (Dollars) 50 100 150 100 1,000 1,400 100 Price (Dollars) 7 110 1 3 120 2020 5 5 Cost (Dollars) I 70 110 In the last row of the table, calculate and enter the value of the CSPI for the remaining years. Price (Dollars) 11 140 1 4 150 5 5 2021 %. Between 2020 and 2021, the CSPI increased by Cost (Dollars) %. 110 140 Which of the following, if true, would illustrate why price indexes such as the CSPI might overstate inflation in the cost of going to college? Check all that apply. The quality of textbooks increased dramatically from 2019 to 2021,…2. (a) Derive and carefully explain the wage- and price-setting model.
- 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(5
