Answered: List and explain all possible impacts…

Business

Economics

List and explain all possible impacts of minimum wage

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 graph illustrates a labor market in which there is a minimum wage of $11 an hour. Draw a point to indicate the number of hours employed and the wage rate. Draw the firms' surplus. Label it FS. Draw the workers' surplus. Label it WS. Draw the deadweight loss. Label it DWL. Draw the potential loss from job search. Label it Loss. >>> A label box can be dragged by its edge to a new position. A minimum wage creates an inefficient allocation of labor resources because at the quantity of employment O A. employment is minimized OB. unemployment is maximized O C. marginal social cost exceeds marginal social benefit O D. marginal social benefit exceeds marginal social cost 16 14- 12+ 10- 8- 6- 44 2- Wage rate (dollars per hour) S Minimum wage D Q Q 0+ 18.0 19.0 20.0 21.0 22.0 23.0 24.0 25.0 Quantity (millions of hours per year) >>> Draw only the objects specified in the question.
Wage $12 $11 $10 $9 $8 $7 $6 $5 $4 $3 $2 $1 T S Tools / $5.50 D 0 1 2 3 4 5 6 7 8 9 10 Labor $6.50 ■. The government introduces a minimum wage of $5.50. Draw a horizontal ne to identify the minimum wage on the graph.
What are the pros and cons of increasing the minimum wage
The graph plz
Which of the following is the most likely outcome of minimum wage laws? an increase in both the quantity of labor supplied by workers and the quantity of labor demanded by firms an increase in the quantity of labor supplied by workers and a decrease in the quantity of labor demanded by firms a decrease in the quantity of labor supplied by workers and an increase in the quantity of labor demanded by firms a decrease in both the quantity of labor supplied by workers and the quantity of labor demanded by firms
Explain the challenges of an increasing minimum wage for an economy
An effective minimum wage imposes a price ceiling on the wages of various categories of low-skill workers. increases the demand for low-skill workers. makes it easier for low skill workers to find jobs. O increases the earnings of some low-skill workers while reducing the employment and training opportunities available to others.
The market of labor force of food delivery is characterized by the chart below. The government decides to protect the citizens and establish the minimum wage on the level of UAH 5200 Wage 3800 4000 4300 4700 5000 5200 5500 5800 6000 Labor supply 10000 11000 12500 14000 14600 15000 15900 16400 17000 Labor demand 17000 16000 15000 14000 13000 12000 11000 10000 9000 How the minimum wage would influence the market of labor force (on business and on workers)? What are the pros and cons of minimum wage implementing? How the workers could mitigate these changes?
How would imposing a minimum wage below the market-clearing wage affect employment in a competitive labor market? Group of answer choices a. Employment would be unchanged because the market forces drive the wage to a higher level. b. Employment would decrease as some workers who are willing to work at the lower competitive wage would no longer be able to find work. there would be a shortage of labor c. Employment would increase because setting a minimum wage below the market wage would increase the quantity of labor demanded d. Employment would decrease because the quantity of labor supplied would decrease
$30 a week boost to minimum wage The government increased the minimum wage by $30 a week to $570 a week. Unions wanted a $35 a week increase, but employers argued that a $35 a week. increase was unaffordable. Source: ABC Australia, February 11, 2011 The graph shows a market for low-skilled labor. If the minimum wage is set at $570 a week, If the minimum wage is set at $540 a week, OA. some people who want a job can't get one; everyone who wants a job has one B. firms cannot hire all the labor they want; everyone who wants a job has one OC. everyone who wants a job has one; firms cannot hire all the labor they want OD. everyone who wants a job has one; some people who want a job can't get one 590- 580- 570- 560- 550 540- 530- 520- 510+ 9.8 Wage rate (dollars per week) A D 9.9 10.1 10 Quantity (millions of hours per year) S 10.2 Next Q Q G
The City of Despair sets a minimum wage of $8 when the market rate for fast food workers is $10. What happens? nothing happens the market for workers is cleared there is an excess supply of workers at $10 there is an excess demand for workers at $10
If the minimum wage is set below the equilibrium wage, 1. It has no effect on the market 2. has more effect than necessary in the market 3. its effect is equal to that of the market 4. has less effect than necessary on the market