Efficiency wage theory suggests that workers will be paid less than their reservation wage. OA. O B. unskilled workers will have a lower turnover rate than skilled workers. O ,productivity might drop if the wage rate is too low. O D, the government can only set tax rates so high before people will prefer not to work. firms will be more resistant to wage increases as the labor market tightens. OE.

Efficiency wage theory suggests that workers will be paid less than their reservation wage. OA. O B. unskilled workers will have a lower turnover rate than skilled workers. O ,productivity might drop if the wage rate is too low. O D, the government can only set tax rates so high before people will prefer not to work. firms will be more resistant to wage increases as the labor market tightens. OE.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The income effect on labor supply is likely to be a. small because most people don't have the ability to change labor supply on the intensive margin b. large because most people can change labor supply on the intensive margin c. large because tax changes create significant labor supply changes at both the intensive and the extensive margin d. small because regulations prevent people from entering the labor force
Policymakers sometimes propose laws requiringfirms to give workers certain fringe benefits, such ashealth insurance or paid parental leave. Let’s considerthe effects of such a policy on the labor market.a. Suppose that a law required firms to give eachworker $3 of fringe benefits for every hour that theworker is employed by the firm. How does this lawaffect the marginal profit that a firm earns from eachworker at a given cash wage? How does the lawaffect the demand curve for labor? Draw your answeron a graph with the cash wage on the vertical axis.b. If there is no change in labor supply, how wouldthis law affect employment and wages?c. Why might the labor-supply curve shift inresponse to this law? Would this shift in laborsupply raise or lower the impact of the law onwages and employment?d. As discussed in Chapter 6, minimum-wage lawskeep the wages of some workers, particularlythe unskilled and inexperienced, above theequilibrium level. What effect would a fringebenefit mandate have…
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A night shift cashier getting paid more than day shift cashiers is due to a. compensating wage differentials O b. discrimination in the job market O c. differences in human capital O d. glass ceiling in the job market What is the type of relationship between social inequality and social surplus? O a. Social inequality increases as social surplus increases. O b. Social inequality decreases as social surplus increases. O c. At first, social inequality increase as social surplus increases. But later the relationship reverses. O d. At first, social inequality decrease as social surplus increases. But later the relationship reverses. Compared to a perfectly competitive industry, in a monopoly. a. both consumer surplus and social surplus are larger O b. consumer surplus is lower but social surplus is larger OC. both consumer surplus and social surplus are smaller O d. consumer surplus is higher but social surplus is smaller
The graph illustrates a labor market in which there is a minimum wage of $5 an hour. Draw shapes that represent the following: 1) firms' surplus. Label it FS. 2) workers' surplus. Label it WS. 3) deadweight loss. Label it DWL. 4) the potential loss from job search. Label it Loss. >>> A label can be repositioned by clicking on the edge of the label box and dragging it onto the shape. Selected: none 8- 7- 6- 5- 4- 3- 2- 1- Wage rate (dollars per hour) 18 19 4 A Delete Clear 23 24 20 21 Quantity (millions of hours per year) >>> Draw only the objects specified in the question. S ? Minimum wage D 25 SOU Next ME
In a perfectly competitive labor market, the worker will be paid: O Less than the value of his/her MRP. O Minimum wage. O More than the value of his/her MRP. O Exactly the value of his/her MRP.
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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…
5. As an employer hires more labor, we expect the marginal revenue product of labor to: a. Increase. b. Decrease. c. Remain constant. d. Impossible to determine. 6. If a firm has market power ( as opposed to being perfectly competitive) and can thus exercise some control over wages, a. It will pay a wages less than MRP. b. it will pay a wage eqaul to MRP. c. it will pay a wage greater than MRP. 7. Rasing the minimum wage will a. Create a surplus of labor. b. raise workers' wages. c. Increase unemployment. d. all of the above. 8. The ease with which people will increase or decrease their income relative to the rest of society is called: a. Income inequality. b. consumption inequality. c. Economic mobility. d. progressive taxation. 9. what is one reason why income inequality in a society might result in economic efficiency? a. it will raise everyone's standard of living equally. b. it will provide an incentive for people to acquire valuable skills. c. it will fully utilize the abilities…