7. Use a diagram of the labour market to show the effects of the following on (i) wagespaid to workers, (ii) the quantity of labour supplied, (iii) the quantity of labourdemanded, and (iv) the amount of unemployment.a) an increase in working-age populationb) a new production technology that decreases the demand for labourc) a decrease in average hours per workerd) an increase in minimum wagee) a decrease in the employment-to-population ratio

Step 1:Initial equilibrium: In each graph, D0 and S0 are initial labor demand and supply curves,…

Answered: 7. Use a diagram of the labour market…

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. The next two questions are about the labor market for upholsterers, who are people who do custom upholstery (the fabric on furniture). A new type of pre-sewn fabric piece reduces the amount of work that an upholsterer needs to do on each piece of furniture, increasing how much work each individual upholsterer can do for the same amount of effort. This is describing a change in some part of the labor demand or labor supply curves. Which part? a. Group of answer choices b. Price of the good (P) c. Marginal productivity of labor (MPL) d. The labor/leisure tradeoff in the supply curve e. The minimum wage 2. Assume that the new pre-sewn fabric ends up making the wage of upholsterers go up. You also observe that very few tailors, which is a similarly difficult job, decide to switch from being tailors to being upholsterers in response to the wage increase. What is this most likely an example of? a. Group of answer choices b. Taste-based discrimination c. Compensating…
Problem 2. Restaurants in Baltimore operate under a total cost function TC(q) = 3q + 5q^2 + 30 Which part of the cost is fixed cost and which part of the cost is variable cost? What is the marginal cost, MC? What is the average total cost, ATC? What is the average variable cost, AVC? In the long run, calculate the equilibrium price and restaurants’ profits. Below what price will restaurants shut down? (Hint: Consider the AVC.)
● Suppose government mandates required firms to make 'safety expenditures' on behalf of workers that did not improve labor productivity. Describe the scale and substitution effects these mandates would have in the labor market.
Note:The answer should be typed.
Subject:- economics
7. In Australia the (w) is 10 Australian dollars (AUD) per worker per hour, and the rental price of capital (r) is 2 AUD per machine per hour. Then the wage in units of machines-defined as the amount of machines that could be bought with one hour's wage-is calculated a. by the formula w xr and is equal to 20 machines b. by the formula w/r and is equal to 5 machines c. by the formula w +r and is equal to 12 machines d. by the formula w -r and is equal to 8 machines
Problem 2 Let's assume you’ve found the following labor demand and supply curves: Lp 30 – w Ls = 2w (a) Solve for the equilibrium wage and employment level. (b) Graph the demand and supply curves. (c) At this equilibrium, what is your welfare/gains from trade? (d) Now, assume a minimum wage has been implemented at $20. How will this impact your demand? Supply? (e) How many workers are displaced by this new policy? How much “extra" unemployment occurs with this new policy? Hint: Think about the reservation wage. (f) Graph the new labor demand and supply with this minimum wage. (g) At this equilibrium, what is your new welfare? Are you better off with this change? Explain.
Economics: Labor Economics Question: 1 Migration is expected to occur if movement between two markets is frictionless unless: A. Value of Marginal Product (VMPe) is equal in both markets B. Their populations are equal C. They have the same labor demand function D. Total gains from trade are equal across both markets Question: 2 The market wage increases by 8%. In response the firm reduces its employment by 5%. What is the elasticity of labor demand? Show your work. Is the demand for labor elastic or inelastic? What do you think will happen to this coefficient in the long run? Thank you for your support and help Training Agent!
Dollars per Hour 6. Historical Perspective a. Analyze Visual 2: Historical Minimum Wage Data. . What trends do you observe in the minimum wage over time? • Why do you think the government has increased the minimum wage over time? FRED-Federal Minimum Wage Rate under the Federal Fair Labor Standards Act 1 1970 1975 Shaded areas indicate U.S. recessions. 1980 1985 1990 1905 2000 2005 2010 2015 O Source: U.S. Department of Labor fred.sticuisted.org
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
18. Europe has become more economically integrated over the past few decades and its economists have been interested in how this has impacted wages. As one example, Germany gave many Czech workers who live near the border work permits so they could apply for jobs in Germany. What does our model predict this did to wages and labor hired in Germany? a. w 1, L ↑ b. w J, L I C. w ↑, L ↑ d. w 1, L I

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