Suppose the minimum wage in this economy is $8.70 per hour. An unemployed worker is defined as someone who is willing to work at the prevailingwage but is unable to find employment. Because the minimum wage lies above the equilibrium wage, it is binding, which means it is also theprevailing wage.If the wage is not allowed to fall below $8.70 per hour, the size of the unskilled labor force isworkers are considered unemployed.The unemployment rate is defined as the percentage of unemployed workers in the labor force:Unemployment Rate =At a minimum wage of $8.70 per hour, the unemployment rate among unskilled workers is approximatelyUnemployedx 100Labor ForceTrueFalseworkers, andRecall that according to the article, a bill moving through the legislature would allow small businesses in Illinois to collect a tax credit to offset theadditional cost of a higher minimum wage. The previous graph shows an initial tax credit of $0. For simplicity, assume that small businesses are theprimary demanders of unskilled workers, and they would receive a tax credit equating to $1 per hour.True or False: With a minimum wage of $8.70, unemployment of unskilled workers is higher with the tax credit versus without it.unskilled 2. The connection between macroeconomics and microeconomicsWhile economists measure unemployment at the macroeconomic level, microeconomic forces are often responsible for this macro aggregate. In otherwords, the tie between microeconomics and macroeconomics is inevitable when discussing the level of unemployment in an economy.Suppose the following graph represents the market for unskilled labor in a fictional economy. These workers typically represent the young,inexperienced, or uneducated part of the labor force and are therefore most effected by changes in the unemployment rate.Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph.Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly.WAGE (Dollars per hour)12a.n0400Labor SupplyLabor Demand200600800QUANTITY (Thousands of workers)1000Graph Input ToolLabor MarketWage Rate(Dollars per hour)Labor Demanded(Thousands ofworkers)Surplus Labor(Thousands ofworkers)Labor Demand ShiftersTax Credit(Dollars per hour)$8.7420160Labor Supplied(Thousands ofworkers)560

While economists measure unemployment at the macroeconomic level, microeconomic forces are often responsible for this macro aggregate. In other words, the tie between microeconomics and macroeconomics is inevitable when discussing the level of unemployment in an economy. Suppose the following graph represents the market for unskilled labor in a fictional economy. These workers typically represent the young, inexperienced, or uneducated part of the labor force and are therefore most effected by changes in the unemployment rate. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Labor Supply Graph Input Tool. Labor Market Wage Rate (Dollars per hour) $8.7

While economists measure unemployment at the macroeconomic level, microeconomic forces are often responsible for this macro aggregate. In other words, the tie between microeconomics and macroeconomics is inevitable when discussing the level of unemployment in an economy. Suppose the following graph represents the market for unskilled labor in a fictional economy. These workers typically represent the young, inexperienced, or uneducated part of the labor force and are therefore most effected by changes in the unemployment rate. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Labor Supply Graph Input Tool. Labor Market Wage Rate (Dollars per hour) $8.7

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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MacroEconomics Question Determine the impact on each of the following four variables if 3 million formerly unemployed workers decide to return to school full time and stop looking for work: The labor force participation rate the size of the labor force The unemployment rate the current U.S. unemployment rate and the current U.S. civilian labor force participation rate.
Suppose Taco Hut currently doesn't offer its employees any health insurance. However, the government is passing legislation to require firms to provide health insurance coverage. Providing such coverage will cost Taco Hut $2 per worker hour, and the workers value this coverage at $3 per worker hour. How will the legislation affect the equilibrium wage and level of employment at Taco Hut? a.Wages will fall, employment will increase b. Wages will stay the same, employment will fall c.Wages will fall, employment will fall d.Wages will increase, employment will increase
please do the questions and the chocies for the last question is (high, low) thankyou!!
In a study of the determinants of regional unemployment rates using pooled cross sections, the coefficients of the year dummies may reveal: Your answer: O there is no economic information that can be retrieved from these coefficients. O regional effects, which affect all cities equally, as long as they are a member of that region. O attitude differences towards unemployment between regions. macroeconomic effects, which affect all regions equally in a given year.
2 In The Hightower Lowdown (Voiume 12, Number 5, May 2010) you could read: 5 MILLION PEOPLE (about 10% of the workforce) are out of work • UNEMPLOYMENT IS HEAVILY SKEWED BY CLASS. Among the wealthiest 10% of American families (incomes above $150,000), only 3% are unemployed - a jobless rate that rises as you go down the income scale. Among the bottom 10%, more than 30% are out of work. [R178] What average unemployment rate for the middle 80% of families fits with the given values for the top and bottom 10% to work out to the overall (weighted) average unemployment rate of 10%?
Suppose the world price of cotton falls substantially. The demand for labor among cotton-producing firms in Texas will The demand for labor among textile-producing firms in South Carolina, for which cotton is an input, will . The temporary unemployment resulting from such sectoral shifts in the economy is best described as unemployment. Suppose the government wants to reduce this type of unemployment. Which of the following policies would help achieve this goal? Check all that apply. O Improving a widely used job-search website so that it matches workers to job vacancies more effectively O Offering recipients of unemployment insurance benefits a cash bonus if they find a new job within a specified number of weeks O Increasing the benefits offered to unemployed workers through the government's unemployment insurance program
Consider the labour market represented in the following graph: real wage W P equilibrium employment WS PS Employment rate Where WS represents the Wage Setting relationship, and PS represents the Price Setting relationship. Which of the following statements are INCORRECT? Changes in the marginal product of labour will change the equilibrium level of unemployment because it makes the wage setting (WS) curve shift. A non-labour related increase in cost of production, will shift the PS curve downwards. The PS curve is horizontal because changes in prices do not affect the rate employment in the economy. A positive demand shock that increases actual output will move the equilibrium employment to the right of the point E in the graph.
10 DRAW A GRAPH. WITHOUT GRAPH THUMBS DOWN!Suppose the markup of goods prices over marginal cost is 2% and the wage-setting equation is W=P(1-u) with u being the unemployment rate.1. What is the Natural level on Unemployment?2. What is the real wage as determined by the price setting equation?3. If the markup increases to 2.5% due to an increase in the price of Oil what happens to the natural rate of employment? Explain briefly and graphically this change.
465000 6. Lina and Sandra graduated, each with a degree in mechanical engineer, Lina decided to start traveling the world with no intent to work as an engineer, while Sandra is still being interviewed at different companies." Lina is not in labor force while Sandra is unemployed Lina is unemployed while Sandra is almost employed Sandra is not in labor force while Lina is unemployed Lina and Sandra are both unemployed Refer to the information provided in
The following scenarios have been taken from actual answers to the Current Population Survey conducted by the Bureau of Labor Statistics. In each case classify the individual as either employed, unemployed, or not in the labor force. 1. Veronica attends Neptune Nigh School full-time. She also works part-time for pay at the North Star Cafe after school.
Unemployment- which is when persons in an economy have lost their job; however, they are still seeking a job. The unemployment rate for Antigua and Barbuda increased from 14.71% to 14.83% in 2020 and 2021, respectively. Most Caribbean Countries had faced an increase in unemployment; however, it had declined since the lockdown had been discontinued for most countries. Show the data in a graph
Suppose an economy is experiencing the following rates of unemployment by type. Rate (%) Cyclically Unemployed 1.5 Frictionally Unemployed 3.3 Structurally Unemployed 2.6 The actual unemployment rate is Multiple Choice 7.4 percent and the natural rate of unemployment is 5.9 percent. 5.9 percent and the natural rate of unemployment is 7.4 percent. 7.4 percent and the natural rate of unemployment is 10.1 percent. 10.1 percent and the natural rate of unemployment is 7.4 percent