Exhibit 27-7 Wage Rate 0 0₁ Quantity of Labor Market A Wage Rate 8₂ Ob and c 34 0₂ Quantity of Labor Market B Refer to Exhibit 27-7. The exhibit shows two markets in which labor of identical skills is employed. Assume that both markets are in equilibrium with Q₁ and Q₂ quantities of labor employed at the respective prices of $4 and $6 per unit. If this equilibrium persists in the long run, an economist would suspect that O nonpecuniary benefits are higher in market A. O nonpecuniary benefits are higher in market B. Othere is discrimination in market A. Othere is no cost of moving across markets.

Exhibit 27-7 Wage Rate 0 0₁ Quantity of Labor Market A Wage Rate 8₂ Ob and c 34 0₂ Quantity of Labor Market B Refer to Exhibit 27-7. The exhibit shows two markets in which labor of identical skills is employed. Assume that both markets are in equilibrium with Q₁ and Q₂ quantities of labor employed at the respective prices of $4 and $6 per unit. If this equilibrium persists in the long run, an economist would suspect that O nonpecuniary benefits are higher in market A. O nonpecuniary benefits are higher in market B. Othere is discrimination in market A. Othere is no cost of moving across markets.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Labor Force Participation Rate analysis

The labor force participation rate analysis calculates the percentage of the working-age population either employed or actively seeking work. It can be anyone in the age category of 16 to 64, on the condition that they are not institutionalized. A high labor force participation rate shows that more people are employed and contributing their wages to the economy, making it a healthy economy. It also shows that there are more people actively looking for employment leading to more hiring options for employers. On the other hand, a low labor force participation rate shows a low number of people employed or looking for work. This leads to an economic setback with fewer wages going into the economy. In such a scenario, employers might have to cut back on profits, lay off employees, or stop the process of hiring.

Question

Exhibit 27-7
Wage
Rate
0
****
0
Quantity of Labor
Market A
Wage
Rate
Quantity of Labor
Market B
Refer to Exhibit 27-7. The exhibit shows two markets in which labor of identical skills is employed. Assume that both markets are in equilibrium with Q₁ and Q₂ quantities of labor employed at the
respective prices of $4 and $6 per unit. If this equilibrium persists in the long run, an economist would suspect that
O nonpecuniary benefits are higher in market A.
O nonpecuniary benefits are higher in market B.
O there is discrimination in market A.
Ob and c
Othere is no cost of moving across markets.

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