Assume that the labour demand equation for a fictional country is Ld= 30 w, where wis the wage per hour worked. Also, assumethat the labour supply equation for that country is Ls = 0.5(w).Instructions: Round your answers to the nearest whole number.a. The equilibrium wage is $and the equilibrium quantity of labour employed ispeople are unemployed.workers.b. At the equilibrium wage,c. If the supply of workers increased, the number of unemployed would:O decrease.increase.O stay the same as long as the wage is free to quickly adjust.

we need to set the demand equation ( Ld = 30 - w ) equal to the supply equation ( Ls = 0.5w ) and…

Answered: Assume that the labour demand equation…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Construct a diagram to describe an equilibrium in a labour market. Clearly label the axises and the key points in your diagram and suppose that the government imposes a minimum wage which is higher than the equilibrium wage occurred in the diagram of the equilibrium labour market then how would the market be affected? draw a diagram to describe the effects of this policy suggest a possible strategy that the government could use to try to solve the problem and sketch a diagram of how your suggestion would solve this problem and then point out the differences between the ultimate outcome of this labour market shown in possible strategy the government would use and the initial equilibrium shown in the diagram of the equlibrium of labour market
If you observed the equilibrium wage rate increasing while equilibrium employment increased, which of the following would be a possible explanation? There was: O a decrease in labor demand an increase in labor supply O a decrease in labor supply an increase in labor demand * Previous Next ASUS
If a labour market is in equilibrium and contracts are incomplete: Employers are willing to hire any unemployed workers willing to work at reservation wages. Select one: O True False
How does immigration affect: A. Unemployment? Explain. B. Wages? Explain. Which source do you agree with the most? The book or the essay from FRED? Or are they the same? Explain.
Suppose that the United States cracks down on illegal immigrants and returns millions of workers to their home countries. Draw a labor supply curve and a labor demand curve for the United States. Label the curves LS, and LDO Draw a point to show the equilibrium quantity of labor and the equilibrium real wage rate. Label it 1. Now suppose the United States returns millions of illegal immigrant workers to their home countries. Draw and label a curve that shows the effect of this return of workers. Draw a point to show the new equilibrium quantity of labor and the equilibrium real wage rate. Label it 2.
Consider the labour market represented in the following graph: real wage W P equilibrium employment WS PS Employment rate Where WS represents the Wage Setting relationship, and PS represents the Price Setting relationship. Which of the following statements are INCORRECT? Changes in the marginal product of labour will change the equilibrium level of unemployment because it makes the wage setting (WS) curve shift. A non-labour related increase in cost of production, will shift the PS curve downwards. The PS curve is horizontal because changes in prices do not affect the rate employment in the economy. A positive demand shock that increases actual output will move the equilibrium employment to the right of the point E in the graph.
In a country called Uncle Sam Land (USL), the labor demand curve is given by:W = K- 4LWhere W is the wage rate, K is a variabledetermined by accumulated capital stock in thecountry, and L is the labor force in the country.K= 50 is supplied by the capitalists.If the labor force in this country goes up from 10 to 11, what happens to the national income in USL?National Income = income of all workers + income of all capitalists.Select one:a. Does not changeb. Goes down by 44c. Goes up by 8d. Goes up by 26e. None of the above.
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.
Assume that the labour demand equation for a fictional country is L = 90 – 2(w), where w is the wage per hour worked. Also, assume that the labour supply equation for that country is Ls = 0.5(w). Instructions: Round your answers to the nearest whole number. a. The equilibrium wage is $ , and the equilibrium quantity of labour employed is workers. b. At the equilibrium wage, | people are unemployed. c. If the supply of workers increased, the number of unemployed would: O stay the same as long as the wage is free to quickly adjust. O decrease. O increase.
The diagram on the right shows a perfectly competitive labour market. The initial equilibrium is with wage w* and employment L*. a. Suppose the demand for labour decreases to D'L. If wages are perfectly flexible, what is the effect on the wages and employment? If wages are perfectly flexible, wages will decrease decrease and employment will Use the point drawing tool to plot the new equilibrium point. Carefully follow the instructions above, and only draw the required object. Real Wage Part a Employment OU
Consider a simple demand-and-supply model of a competitive labour market in a small town. The demand and supply curves for labour are given by Demand: w= 22 - 3LD Supply: w=4+3LS where w is the wage ($ per hour) and L is the number of hours of employment (measured in thousands of hours per month). a. Use the line drawing tool to plot the demand and supply curves in the graph at the right. Use points with labour hours value of 0 and 5 to draw the lines. Label the lines properly. Carefully follow the instructions above, and only draw the required objects. C Wage ($ per hour) 24- 22- 20- 18- 16- 14- 12- 10- 8- 6- 4- 2- 0- 0 Labour Market 2 3 4 1 Labour (thousands of hours per month) + 5
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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