LABOR ECON-CONNECT ACCESS
8th Edition
ISBN: 9781264604197
Author: BORJAS
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Question
Chapter 1, Problem 1RQ
To determine
Explain
Expert Solution & Answer
Explanation of Solution
Labor economics is a branch of economics, which studies how the labor market works. That is, the labor economics explores the dynamics of labor markets. The main topics that are addressed by the labor economics are listed below:
- The determination of the income distribution.
- The economic impact of employers.
- The allocation of worker’s time to the labor market.
- Business hiring and firing decisions.
- The discrimination in the labor market.
- The determinants of
unemployment . - The employees’ decision to invest in human capital.
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
What is labor economics? Which types of questions do labor economists analyze?
Classify the following as microeconomics or macroeconomics andprovide justification
A firm's decision about how many workers to hire
What are some of the uses to which labors tandards are put?
Chapter 1 Solutions
LABOR ECON-CONNECT ACCESS
Knowledge Booster
Similar questions
- Karen works at a fast food restaurant. When her wage rate was $10 per hour, she worked 30 hours per week. When her wage rose to $13 per hour she worked 40 hours per week. When her wage rose to $17 per hour, she decided to work $35 hours per week. a. Draw Karen's individual labor S curve b. Is Karen's behavior irrational or can you find a rational explanation. Explain your answer. You are tharrow_forwardConsider the labor market defined by the supply and demand curves plotted on the following graph. Use the calculator to help you answer the following questions. You will not be graded on any changes you make to the calculator. WAGE (Dollars per hour) 20.0 17.5 Supply 15.0 12.5 10.0 7.5 5.0 2.5 + 0 0. Demand 125 250 375 500 625 750 875 1000 LABOR (Thousands of workers). Graph Input Tool Market for Labor Wage (Dollars per hour) Labor Demanded (Thousands of workers) 2.50 875 Labor Supplied (Thousands of workers) 125arrow_forwardName some factors that can cause a shift in the demand curve in labor markets.arrow_forward
- What is the theory of efficiency wages? If you were an employer, would you pay efficiency wages? At least provide four detailed reasons that you might pay efficiency wages.arrow_forwardWhat is the difference between factor cost and market price? According to macro economics?arrow_forwardThis figure below shows the labor market for automobile workers. The curve labeled S is the labor supply curve, and the curves labeled D1 and D2 are the labor demand curves. On the horizontal axis, L represents the quantity of labor in the market. S Refer to Figure above. What is measured along the vertical axis on the graph? Select one: a. time spent by workers producing automobiles b. the price of automobiles c. the wage paid to automobile workers d. the quantity of automobiles producedarrow_forward
- You are given a scenario where this a change in a factor of production or a change in demand for an item. You need to explain in sentence form how this would change the demand for labor. See the example and model your answers after how the example is written.arrow_forwardKaiser's Ice Cream Parlor produces smoothies. The market for smoothies is perfectly competitive, and the price is $4.00 a smoothie. The labor market is competitive, and the wage rate is $48.00 a day. The table shows part of the workers' total product schedule. Calculate the marginal product of hiring the fourth worker and the value of the marginal product of the fourth worker. The marginal product of hiring the fourth worker is smoothies a day. The value of the marginal product of the fourth worker is $a day. de in % 5 DOD t 6 M ||₁ & 7 u * 8 9 Workers 2 3 4 6 O 0 Smoothies per day 28 40 50 58 62 Next mpts tact Us | ✪arrow_forwardIf soccer becomes more popular in the United States and basketball becomes less popular, is it true that professional basketball players will earn more than they earn today? Use the laws of demand and supply in factor markets to explain you answer.arrow_forward
- Q. 1 Analyze and graph the Product Effect and the Substitution Effect in labor demand in the face of an increase in labor price.arrow_forwardIf higher wages raise productivity, does supply and demand determine wages?arrow_forwardYou are given a scenario where this a change in a factor of production or a change in demand for an item. Explain in sentence form how this would change the demand for labor. See the example and model your answers after how the example is written. Change in Factor of Production Effect on Labor Market Example: There is a decrease in the price of oil, and you make plastic containers. The decrease in the price of oil will make it cheaper to produce plastic containers. The firm can lower its price and it will sell more. This will increase the demand for labor at your firm. 1. Apple develops the iPhone and demand for it surges as people realize the benefits of this improved technology. You manufacture flip phones. 2. You own a sports equipment manufacturing firm. You were just informed rent at your warehouse space would double. 3. You develop a popular video game and continue to develop new versions to keep people interested in the game.…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning