Show the likely effects on price- and/or wage- setting behaviour as reflected in the WS/PS diagram of the following: (a) workers become more worried about losing their jobs at any given level of employment (b) the government intervenes to protect domestic firms from foreign competition (c) higher social security contributions paid by employers (d) a reduction in the proportion of employees covered by union wage agreements (e.g. as the result of a decline in industries in the economy that are heavily unionized)

Show the likely effects on price- and/or wage- setting behaviour as reflected in the WS/PS diagram of the following: (a) workers become more worried about losing their jobs at any given level of employment (b) the government intervenes to protect domestic firms from foreign competition (c) higher social security contributions paid by employers (d) a reduction in the proportion of employees covered by union wage agreements (e.g. as the result of a decline in industries in the economy that are heavily unionized)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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