Based on economic theory, the introduction of a binding price floor (such as the minimum wage) in a competitive labor market has which of the followingconsequences:O None of the other answersO t leads to an increase in employer (consumer) surplusO It creates a shortage of labor supplied relative to labor demandedO It transfers surplus from workers to employersO It leads to the efficient level of workers employed

Price floor is the minimum price that must be paid to sellers.

Based on economic theory, the introduction of a binding price floor (such as the minimum wage) in a competitive labor market has which of the following consequences: O None of the other answers O It leads to an increase in employer (consumer) surplus O It creates a shortage of labor supplied relative to labor demanded O It transfers surplus from workers to employers O It leads to the efficient level of workers employed

Based on economic theory, the introduction of a binding price floor (such as the minimum wage) in a competitive labor market has which of the following consequences: O None of the other answers O It leads to an increase in employer (consumer) surplus O It creates a shortage of labor supplied relative to labor demanded O It transfers surplus from workers to employers O It leads to the efficient level of workers employed

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter12: Labor Markets And Labor Unions

Section: Chapter Questions

Problem 1.1P

See similar textbooks

Similar questions

What is die price commonly called in the labor market?
Why are the factors that shift the demand for a product different from the factors that shift the demand for labor? Why are the factors that shift the supply of a product different from those that shift the supply of labor?
Assume that the supply of law-skilled worker is fairly elastic, but the employers demand for such workers is fairly inelastic. If the policy goal is to expand employment for low-skilled workers, is it better to focus on policy tools to shift the supply of unskilled labor or on tools to shift the demand for unskilled labor? What if the policy goal is to raise wages for this group? Explain your answer with supply and demand diagrams.
Other than the demand for labor, what would be another example of a 'derived demand?
Name some factors that can cause- a shift in the supply curve in labor markets.
Answer question D, E ,F for me
Figure 18b This figure below shows the labor market for automobile workers. The curve labeled S is the labor supply curve, and the curves labeled D1 and D2 are the labor demand curves. On the horizontal axis, L represents the quantity of labor in the market. 0 S D₁ What is measured along the vertical axis on the graph? O a. the wage paid to automobile workers O b. time spent by workers producing automobiles O c. the quantity of automobiles produced O d. the price of automobiles L
Give four explanations for why firms might find ii profitable lo pay wages above the level that balances quantity of labor supplied and quantity oflabor demanded.
Please do A B C only
Suppose demand for labor is given by the equation P = 75 – 20 and the supply for labor is given by the equation P = 15 + 4Q. Price is the hourly wage rate in dollars and quantity measures the number of workers. Imposing a minimum wage of $70 will result in O None of the above. O Unemployment of 0 and firms will hire 15 O Labor shortage of 0 and firms will hire 10 O Labor surplus of 15 and firms will hire 20 workers
The diagram provides supply and demand curves for a competitive labour market it a labour union negobates the wage to W, in an otherwise competitive labour market OA employers will hire L, labour OB. employers will here labour at the level higher than L OC. the supply of labour will stay the same OD equilibrium will occur at W, and L OE the demand for labour will stay the same 0 Wage Rate W₁ Quarnty of Labour Supply Demand
At the current starting salary of $18,000 per year, the number of new business school graduates demanded is 100,000 a year and the number supplied is 120,000. Based on this information, you can conclude that Select one: O a. there's a shortage of new business school graduates in the market. O b. the equilibrium wage of business school graduates is more than $18,000 per year. the equilibrium wage of business school graduates is less than $18,000 per year. O d. the labor market for new business school graduates is in equilibrium.