Economics: Labor Economics Question: 1 An employment subsidy will cause all of the following to occur except: A. An employment subsidy is essentially a negative tax B. An employment wage subsidy reduces the net wage a firm pays C. An employment subsidy will shift the labor demand curve up D. An employment subsidy does not affect the size of a firm's workforce
Question: 1
An employment subsidy will cause all of the following to occur except:
A. An employment subsidy is essentially a negative tax
B. An employment wage subsidy reduces the net wage a firm pays
C. An employment subsidy will shift the labor
D. An employment subsidy does not affect the size of a firm's workforce
Question: 2
The lower the elasticity of substitution between labor and capital the less
a.a firm is more willing to pay higher labor costs if it is difficult to substitute capital for labor.
b.a firm is less willing to pay higher labor costs if it is easy for the firm to substitute capital for labor.
c.the firm’s output price falls when the firm produces more output.
d.labor supply increases when wage increase
e.firms always have options of substituting capital for labor.
Question: 3
In terms of migration what is mean by wage convergence?
a. Wages in a particular location will converge to a single wage regardless of skill level.
b. Migration naturally results in wage differences across locations being competed away leading to more equal wages regardless of location
c. Workers are naturally drawn to locations in which the variation in wages is the least.
d. Migration naturally results in wage differences across locations being exacerbated leading to a wider distribution of wages regardless of location.
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