When there is increase in the production, we normally increase thelabour rather than the machinery. The more labour employed inthe production process, there will be raise in the production, Butcontinuous increase in the labour may lead to decrease in theproduction after certain point. Here comes the question. How manyemployees should be employed to get maximum production? Lawof variable proportion answers the question of the employment oflabour for optimum production? Explain the Law of VariableProportions in detail?

Law of variable production states that if we keep one factor fixed and keep increasing the other,…

Answered: When there is increase in the…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter15: Poverty And Economic Inequality

Section: Chapter Questions

Problem 30CTQ: What goods and services would you include in an estimate of the basic necessities for a family of...

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Suppose that Congress passes a law requiringemployers to provide employees some benefit (suchas healthcare) that raises the cost of an employee by$4 per hour.a. What effect does this employer mandate haveon the demand for labor? (In answering this andthe following questions, be quantitative whenyou can.)b. If employees place a value on this benefit exactlyequal to its cost, what effect does this employermandate have on the supply of labor?c. If the wage can freely adjust to balance supply anddemand, how does this law affect the wage andthe level of employment? Are employers better orworse off? Are employees better or worse off?d. Suppose that, before the mandate, the wage in thismarket was $3 above the minimum wage. In thiscase, how does the employer mandate affect thewage, the level of employment, and the level ofunemployment?e. Now suppose that workers do not value themandated benefit at all. How does this alternativeassumption change your answers to parts(b) and (c)?
An oconomy has two sectors, Sector 1 and Soctor 2. For simplicity, assumo both sectors only uso labor In production, and labor Is homogeneous. Lot MPL = marglnal product of labor, APL = averago product of labor, (WIP) = real wage, the most officlont allocation of labor for this economy happens when (note: a subscript danotos the sactor, o.g., (WIP), is the real wage pald in Sector 1) O A. (W/P)1 = AP4 and (W/P)2 = APL2 OB. (W/P)1 APL1= (W/P)2 APL2 OC (W/P)1 = MPL1 and (W/P)2 = MPL2 O D. (W/P)1 = MPL1 = (W/P)2 = MPL2 %3D
What is a good example of the effect of human capital on income? O A Workers who learn to make high demand products are well-paid O B. Only job applicants with high school diplomas get interviews O C. Employees who learn to perform high risk jobs always get paid more O D. People with college degrees usually earn more than those with less education
What goods and services would you include in an estimate of the basic necessities for a family of four?
A visiting American executive finds that a foreign subsidiary inBangladesh has hired a 12-year-old girl to work on a factoryfloor, in violation of the company's prohibition on child labour.He tells the local manager to replace the child and tell her to goback to school. The local manager tells the American executivethat the child is an orphan with no other means of support, andshe will probably become a street child if she is denied work. explain Cultural Relativist based on the statement given
The backward-bending supply curve for labour exists- (A) Only in inflationary conditions doid W (B) Wherever income effect overcomes substitu- tion effect basmob ar C, lagual
. Among the adult population of a certain town 50% are male. 60% are wage-earner and 50% are 45 years age or over, 10% ofmales are not wage earmers and 40% of males are under 45. Make the best possible inference about the limits within which the percentage of persons (male or female) of 45 years or over are wage earner.s
Explain how the wage can adjust to balance thesupply and demand for labor while simultaneouslyequaling the value of the marginal product oflabor.
The way the workers’ compensation system works now, employees permanently injured on the jobreceive a payment of $X each year whether they work or not. Suppose the government were toimplement a new program in which those who did not work at all got $0.5X but those who did work got$0.5X plus workers’ compensation of 50 cents for every hour worked (of course, this subsidy would bein addition to the wages paid by their employers). What would be the change in work incentivesassociated with this change in the way workers’ compensation payments are calculated?
When Alan Greenspan (an economist who wouldlater chair the Federal Reserve) ran a consulting firmin the 1960s, he primarily hired female economists. Heonce told the New York Times, “I always valued menand women equally, and I found that because othersdid not, good women economists were cheaper thanmen.” Is Greenspan’s behavior profit-maximizing? Isit admirable or despicable? If more employers werelike Greenspan, what would happen to the wagedifferential between men and women? Why mightother economic consulting firms at the time not havefollowed Greenspan’s business strategy?
what factor determine movement along demand curve for labour and increase or decrease in it? why theory of distribution is special case of the theory of pricee?
Why Caltie is evapertant in glehel wopertant in glabal Ma

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