Fischer and Taylor pointed out an important characteristic of both wage and price setting, the staggering of wage and price decisions. Which of the followin best explains the rational for these adjustments? O A. When hiring new engineers or business school graduates, firms do not consider the prevailing wage in the market for similarly educated workers. O B. Wage adjustments occur at different times for different firms throughout the year, much as the dates for firms' fiscal years vary throughout the year. O C. Indexing of wages to macroeconomic variables, such as the inflation rate, occurs frequently in wage setting arrangements of one year or less. O D. Bargaining among labor unions, where the wage set at one union is irrelevant at another due to membership turnover.

Fischer and Taylor pointed out an important characteristic of both wage and price setting, the staggering of wage and price decisions. Which of the followin best explains the rational for these adjustments? O A. When hiring new engineers or business school graduates, firms do not consider the prevailing wage in the market for similarly educated workers. O B. Wage adjustments occur at different times for different firms throughout the year, much as the dates for firms' fiscal years vary throughout the year. O C. Indexing of wages to macroeconomic variables, such as the inflation rate, occurs frequently in wage setting arrangements of one year or less. O D. Bargaining among labor unions, where the wage set at one union is irrelevant at another due to membership turnover.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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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 $18,000 per year. O d. the labor market for new business school graduates is in equilibrium.
Figure 3.2 Wage Rate ($ per day) 15 5. 0 20 Quantity of Labor O $15; 30 workers 5; 30 workers S₁ $5; 20 workers O $10; 40 workers D₁ 40 In Figure 3.2, assume that we have labor market demand and supply curves of D₂ and S₁, respectively. What is the equilibrium wage and employment level? S₂ D₂
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Consider an economy with two labor markets—onefor manufacturing workers and one for serviceworkers. Suppose initially that neither is unionized.a. If manufacturing workers formed a union, whatwould you expect to happen to the wages andemployment in manufacturing?b. How would these changes in the manufacturinglabor market affect the supply of labor in themarket for service workers? What would happento the equilibrium wage and employment in thislabor market?