Answered: Is the decision of mcdonalds to hire…

Is the decision of mcdonalds to hire fewer workers because of an increase of minimum wage due to microeconomics or macroeconomics

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter16: The Markets For Labor, Capital, And Land

Section: Chapter Questions

Problem 6P

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If the demand for soccer tickets increases, why would an economist expect the salaries of soccer players to increase? because of the reduction in the supply of world-class soccer players because of the demand for an input being a derived demand because of the change in the opportunity cost of building new stadiums because of the principle of diminishing marginal product
Question What will be the demand of inputs when the input price depends on the demand
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Consider this graph represents McDonald's demand for labor. Choose the 2 scenarios that would shift the demand for labor from D1 to D3. Group of answer choices McDonalds buys a machine that can do the work of 5 human employees. (Long Run) Breaking News: All McDonald's food contains traces of rat poison. People decide to eat less. The Travis Scott meal is heavily promoted on social media increasing people's desire to eat at McDonalds more often. McDonalds buys a machine that can do the work of 5 human employees. (Short Run)
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A supply curve of work hours can be backward-bending beyond some wage rate. Examples of backward-bending labor supply curves exist in academics and professional athletics. Once university (or college) professors attain tenure, their productivity (in some cases) tends to decline. The diminished productivity appears to reflect fewer hours being devoted to research. Michael Jordan (who was making over $40 million per year in salary and endorsements) quit professional basketball in 1993 to spend more time with his family, play golf, and try out for a major league baseball team. Under what circumstances will a labor supply curve bend backwards? Show this result in a labor-leisure choice diagram. Is leisure normal, inferior, or neither when the labor supply curve bends backward as the wage rate rises? Please identify the income and substitution effects of a reduction in work hours at higher pay.
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When prices of the factor input falls the supply curve shifts rightward It is true or not????????....
Listed are scenarios that may lead to changes in labor market conditions for chefs. Use your knowledge of labor demand and supply curves to match each scenario to the appropriate category. Will cause a shift in the demand for labor Will cause a shift in the supply of labor Will cause a shift in both the demand for labor and supply of labor Will not result in a curve shifting A professional cooking tool is invented that reduces the number of chefs required to produce many dishes. The amount of training required to work as a chef increases. Wages for chefs increase. Answer Bank
On April 1, 2009, in the middle of a recession, the government of the province of Ontario, Canada increased the provincial minimum wage from $8.75 to $9.50. What will the likely effect of this policy be?