aWALALeLcFigure 14.4Refer to Figure 14.4 above. In the market for soldiers above, the government'sdemand for soldiers is D', and it chooses to pay a wage of WB, drafting the remainingsolders. Producer surplus for only the drafted soldiers equalsarea "g - (d + e + f)."zero.area "- (d + e + f)."None of the above.

Producer Surplus is the area above the supply curve of soldiers and below the wage given in the…

Answered: a Wa Ws D' Le Le Figure 14.4 Refer to…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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why raise in a minimum wage of a workers is better than raise of the minimum wage to 15$
Hourly Wage (dollars) $8.00 8.50 9.00 9.50 10.00 10.50 Quantity of Labor Supplied 350,000 360,000 370,000 380,000 390,000 400,000 Quantity of Labor Demanded 390,000 380,000 370,000 360,000 350,000 340,000
The graph illustrates a labor market in which there is a minimum wage of $11 an hour. Draw a point to indicate the number of hours employed and the wage rate. Draw the firms' surplus. Label it FS. Draw the workers' surplus. Label it WS. Draw the deadweight loss. Label it DWL. Draw the potential loss from job search. Label it Loss. >>> A label box can be dragged by its edge to a new position. A minimum wage creates an inefficient allocation of labor resources because at the quantity of employment O A. employment is minimized OB. unemployment is maximized O C. marginal social cost exceeds marginal social benefit O D. marginal social benefit exceeds marginal social cost 16 14- 12+ 10- 8- 6- 44 2- Wage rate (dollars per hour) S Minimum wage D Q Q 0+ 18.0 19.0 20.0 21.0 22.0 23.0 24.0 25.0 Quantity (millions of hours per year) >>> Draw only the objects specified in the question.
7.Draw a theoretical market for low-skilled labor along with a non-binding minimum wage. Indicate if there is a shortage or surplus; and if there is, explain what it means
An effective minimum wage imposes a price ceiling on the wages of various categories of low-skill workers. increases the demand for low-skill workers. makes it easier for low skill workers to find jobs. O increases the earnings of some low-skill workers while reducing the employment and training opportunities available to others.
The market of labor force of food delivery is characterized by the chart below. The government decides to protect the citizens and establish the minimum wage on the level of UAH 5200 Wage 3800 4000 4300 4700 5000 5200 5500 5800 6000 Labor supply 10000 11000 12500 14000 14600 15000 15900 16400 17000 Labor demand 17000 16000 15000 14000 13000 12000 11000 10000 9000 How the minimum wage would influence the market of labor force (on business and on workers)? What are the pros and cons of minimum wage implementing? How the workers could mitigate these changes?
Minimum Wages and Unions Assume an industry without legal minimum wages and unions. Show in a diagram how the equilibrium wage W* is determined, and briefly explain all the concepts in the diagram. Now suppose a minimum wage, WMIN, is legislated at a level lower than W*, i.e. WMIN<W*. Show it in the diagram and explain whether the labour market outcomes in part a. change, and how. Now suppose a minimum wage is legislated at a level higher than W*, i.e. WMIN>W*. Show it in the diagram and explain what the labour market outcomes will be. Now suppose a workers’ union is created and successfully negotiates wage WUNION, which is above both W* and WMIN, i.e. WUNION>WMIN>W*. Explain what the labour market outcomes will be compared to the previous part.
A country has two regions, the North and the South, which are identical in all respects except the hourly wage and the number of workers. The demand for labor in each region iswN = $20 - .5EN and wS = $20 - .5ESwhere EN and ES are millions of workers. Currently there are 6 million workers in the North and 18 million workers in the South.a. What is the wage in each region?b. If there are no shocks to the economy, migration over time will result in an equalization of wages and employment. What would be the long-run wage and employment level in each region?c. Return to the original setup where there are 6 million workers in the North and 18 million workers in the South. As a policymaker, you decide not only to allow 2 million immigrants of working age to enter your country, but you have the authority to resettle the immigrants wherever you want. How should you distribute immigrants across the regions to maximize the country’s immigration surplus? Besides maximizing the immigration surplus…
If the minimum wage is set below the equilibrium wage, 1. It has no effect on the market 2. has more effect than necessary in the market 3. its effect is equal to that of the market 4. has less effect than necessary on the market
Consider the market for a iced coffees. Each shop can make at most one drink. For shop A the marginal cost of making the coffee is $1.25, for shop B, it is $2.10, for shop C it is $3.00 and finally, for shop D it is $2.50. If the market price is P = $2.75 a. what is the quantity supplied? b. what is the total producer surplus?
DS S The following graph plots a supply curve (orange line) for a group of recent graduates looking to sell used motor scooters. Each seller has only a single used scooter available for sale. Think of each rectangular area beneath the supply curve as the "cost," or minimum price that each seller is willing to accept. Assume that anyone who has a cost that equals the market price is willing to sell their used scooter. PRICE (Dollars per used scooter) 360 300 240 180 120 60 0 0 Alex Statement Becky Clancy Eileen Hubert 2 4 3 QUANTITY (Used scooters) 5 Kate O Đ Region X (the purple shaded area) represents total producer surplus when the market price is equal to $ area) represents when the market price In the following table, indicate which statements are true or false based on the information provided on the previous graph. Producer surplus is smaller when the price is $210 than when it is $180. Assuming each seller receives a positive surplus, Alex will always receive more producer…

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