For each of the scenarios in the following table, indicate the most likely reason for the difference in earnings. Differences in Human Capital Scenario Major league hockey goalies earn more than minor league hockey goalies. Two automotive technicians have the same amount of schooling and work experience, but earn different wages. The first works the day shift for an auto manufacturer factory for an annual wage of $54,000 per year, and the second works the night shift for the same company for an annual wage of $60,000 per year. Research done in the United States, based on U.S. Census data, finds that -during an adult's working life-high school graduates earn an average of $1.2 million, associate's degree holders earn about $1.6 million, and bachelor's degree holders earn about $2.1 million. Compensating Differential O Differences in Ability Labor Unions

For each of the scenarios in the following table, indicate the most likely reason for the difference in earnings. Differences in Human Capital Scenario Major league hockey goalies earn more than minor league hockey goalies. Two automotive technicians have the same amount of schooling and work experience, but earn different wages. The first works the day shift for an auto manufacturer factory for an annual wage of $54,000 per year, and the second works the night shift for the same company for an annual wage of $60,000 per year. Research done in the United States, based on U.S. Census data, finds that -during an adult's working life-high school graduates earn an average of $1.2 million, associate's degree holders earn about $1.6 million, and bachelor's degree holders earn about $2.1 million. Compensating Differential O Differences in Ability Labor Unions

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

How many employees should Martin's farm employ? How many employees should Martin's farm employ if the price he received per gallon of milk rose to $2.50?
Consider a small, remote town with only one employer - a pulp and paper mill. Suppose there are currently 600 workers, each of whom is paid $5000 per month. In order to attract one additional worker, the employer must increase all workers' wage to $5100 per month. What is the marginal cost to the firm of hiring the additional worker? Show transcribed image text . Consider a small, remote town with only one employer - a pulp and paper mill. Suppose there are currently 600 workers, each of whom is paid $5000 per month. In order to attract one additional worker, the employer must increase all workers' wage to $5100 per month. What is the marginal cost to the firm of hiring the additional worker?
Consider the fast food industry in the United States. Research existing estimates of the demand for fast food, the labor share for fast food, and the elasticity of substitution between capital and labor in the fast food industry. Based on the estimates in the literature, what is a plausible range of values for the elasticity of labor demand for the fast food industry? Thanks!
Suppose that education is the only factor that affects productivity and that an additional year of education raises wages by 2%. Suppose in 2011 gender wage gap was 13%, and the average man had 15 years of education while the average women had 14 years of schooling. a) Using the wage gap decomposition technique, calculate how much of the 13% wage differential is due to discrimination? b) Now suppose in 2021 the gender wage gap is 10%, but the average woman’s education level is increased to 17 year and the average man’s education increases to16 years. (Assume that the return to education stays same at 2%), Was there a decrease or an increase in wage discrimination in the decade? Why?
Need help with this. Thanks! Kyoko currently earns a_________(nominal or real) wage of $12.00 per hour; in other words, the amount of her paycheck each week is $12.00 per hour times the number of hours she works. Suppose the price of milk is $2.50 per gallon; in this case, Kyoko's_________(nominal or real) wage, in terms of the amount of milk she can buy with her paycheck, is__________ gallons of milk per hour. When workers and firms negotiate compensation packages, they have expectations about the price level (and changes in the price level) and agree on a_______(nominal or real) wage with those expectations in mind. If the price level turns out to be higher than expected, a worker's________(nominal or real) wage is_______(higher or lower) than both the worker and employer expected when they agreed to the wage. Kyoko and her employer both expected inflation to be 4% between 2012 and 2013, so they agreed, in a two-year contract, that she would earn $12.00 per hour in 2012 and…
Boeing created, and recently expanded, an airplane manufacturing center in Charleston, South Carolina. One of the factors that likely influenced this location decision is that South Carolina is a "right to work" state. This represents a) a place factor related to labor. b) a transportation factor related to the market. c) higher wages for Boeing workers in South Carolina relative to Washington. d) a place factor related to the political environment.
When focusing on a married couple, one person’s non-labor income includes the laborearnings of his/her partner. Using a graph of budget constraints and indifference curves,describe what would happen to the labor supply of one spouse if the other experiences aninvoluntary job loss. Your answer does not depend on whether the spouse you’regraphing is initially supplying labor or not.
5. In Chapter 9 of your text, complete Exercise #3 found on page 321. Suppose that you observe that the wages for accountants in your town have gone up and that the number of accountants employed has also gone up. Which one of the following conditions could explain this? Illustrate your answer with a graph and explain in a brief paragraph. a) Businesses are failing, reducing the need for accountants. b) Many accountants are leaving the field in order to train to become financial analysts instead. c) A rash of business scandals has increased the demand for auditing services performed by accountants. d) The local university has just graduated an unusually large group of accountants.
In Orlando, 135 people are willing to spend an hour working as yoga instructors for an hourly wage of $20. For each additional $5 that the wage increases above $20, an additional 45 people are willing to spend an hour working. For hourly wages of $20, $25, $30, $35, and $40, plot the daily labor supply curve for yoga instructors on the following graph. ? 50 45 40 R 8 WAGE (Dollars per hour) 88 20 15 10 5 0 0 45 90 135 150 225 270 315 300 405 450 LABOR (Number of workers) -0 Supply What is one explanation for why this labor supply curve is upward sloping? Unemployment benefits are steadily declining. O People prefer to spend time doing leisure activities rather than working. Firms are willing to hire fewer yoga instructors at a higher wage. The opportunity cost of leisure increases as wages increase. 4
How would I analyze how the equilibrium wage and number of working hours will change when a company has a great demand for workers (i.e. grocery stores now) yet some current workers don't want to work as many hours? How would I explain the three cases that would depend on the relative size of change in labor demand and labor supply? For example. Case 1. Change in supply(∆LS)| = |Change in Demand(∆LD )| . Case 2: |∆LS| > |∆LD| . Case 3: |∆LS| < |∆LD| I'm trying to understand how the equilibrium wage and number of working hours will change under these different scenarios. Thanks