What characteristic of efficiency-wage jobs is not supported by the situation shown in the graph? The wage rate will eventually return to the market-clearing level. Efficiency wages result in an increase in the rate of unemployment. Elevated wages serve as an economic incentive to work harder. Efficiency wage jobs result in a surplus of workers at the wage being offered.

What characteristic of efficiency-wage jobs is not supported by the situation shown in the graph? The wage rate will eventually return to the market-clearing level. Efficiency wages result in an increase in the rate of unemployment. Elevated wages serve as an economic incentive to work harder. Efficiency wage jobs result in a surplus of workers at the wage being offered.

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

Institutions such as labor unions and large corporations are able to set wage rates without regard to the market forces of supply and demand. True False
Consider two labour markets that are identical, aside from the fact that one is a monopsony and the other is perfectly competitive. a) Which labour market would you expect to pay the higher wage? Explain. b) Which labour market would you expect to have the higher level of employment? Explain. c) Now, assume that the government implements a minimum wage in both labour markets. Specifically, the minimum wage is set equal to the perfectly competitive labour market's equilibrium wage. i) Do you expect the new minimum wage to increase/decrease/not affect the wage level in the monopsonistic labour market? Do you expect the new minimum wage to increase/decrease/not affect the employment level in the monopsonistic labour market? Explain. ii) Do you expect the new minimum wage to increase/decrease/not affect the wage level in the perfectly competitive labour market? Do you expect the new minimum wage to increase/decrease/not affect the employment level in the perfectly competitive labour…
Consider the labour market for farms during the harvest season. Assume the market is perfectly competitive, with a labour demand function QD = 10-P and a labour supply function QS = 3P, where P is the wage. a) What are the consumer (farm owners) surplus and producer (farm workers) surplus in equilibrium? b) What is the price elasticity of demand at the equilibrium? c) Suppose the government subsides the farm owners (consumers) $1 for every unit of labour purchased. Then, compute the quantity of labour traded in the market, the wage received by the workers and the wage paid by the farm owners. d) Calculate the consumer surplus and producer surplus in the presence of the subsidy in part c).
In the event of increased graduates of a particular program, the Market Supply Curve for that occupation: Shift to the right Shift to the left shift up along the curve Shift down along the curve none of the above
this item is one question but has three parts
Based on the accompanying labor-market diagram, if the minimum wage is increased by from $7 to $9 per hour, the number of unemployed workers will workers. Wages per hour $10 $9 $7 Labor Supply A 60 80 100 120 140 Number of workers employed Labor Demand Answer: Since the price floor is not binding, the number of unemployed workers will not change
The figure to the right illustrates the demand curve (D) and the supply curve (s ) for a labor market. The market equilibrium is initially at point e,. Suppose the supply of labor decreases. Show how this affects the labor market. 1.) Using the line drawing tool, show how the market supply of labor changes by drawing a new market labor supply curve. Label the line "S?." 2.) Using the point drawing tool, show the new market equilibrium wage and level of employment. Label this point "e,." Carefully follow the instructions above, and only draw the required objects. DL Quantity of labor Wage (dollars per hour)
Consider the market for low-skilled labor where firms demand labor and workers supply labor. The price of low-skilled labor is the hourly wage paid to the workers in dollars, W. The demand and supply curves are: D(W) = 60 – 2W and S (W) = 30 + W (These give the number of hours demanded/supplied each week in millions, i.e., if S(W)=30 this means there are 30 million hours supplied at that hourly wage. But I will assume your answers are in millions so you don't need to keep writing millions.) The equilibrium wage and quantity are W*=10 and Q*=40. a. Consider a minimum wage of W=$8. What will be the new equilibrium wage and quantity? a. W*= b. Q*= b. Suppose the Democrats implement a new federal minimum wage of W=$12. What will be the new equilibrium wage and quantity? ( a. W*= b. Q*= c. Draw a supply and demand graph with the minimum wage to illustrate your answer to (b).
$7.25 S6.50 $4.50 D. 500 800 900 1200 Number of workers Refer to the graph shown. If the government establishes a price floor of $10.50 per hour from the previous market price of $6.50, there will be: Wage per hour
In the event of increased restrictions on working in a particular occupation: the market supply curve would shift to the right the movement along the curve would result in higher wages The Market Labour Supply Curve would shift left there would be no movement of supply none of the above
Suppose a minimum wage in the labor market is set above the equilibrium wage. Label the areas on your graph representing worker surpluses, firm surpluses, and deadweight loss. Identify the excess supply, and/or demand that exists in this market.
Sometimes firms pay wages above the market-clearing wage (efficiency wages). Wages are a coat to a firm. Give two reasons why a firm would CHOOSE to pay efficiency wages.