Principles of Economics (12th Edition)
12th Edition
ISBN: 9780134078779
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
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Question
Chapter 28, Problem 1.2P
Sub part (a):
To determine
Labor force participation, labor supply, and
Sub part (b):
To determine
Labor force participation, labor supply, and unemployment.
Sub part (c):
To determine
Labor force participation, labor supply, and unemployment.
Sub part (d):
To determine
Labor force participation, labor supply, and unemployment.
Sub part (e):
To determine
Labor force participation, labor supply, and unemployment.
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Students have asked these similar questions
Which of the following could shift the labor supply curve and increase employment?
a.
increased federal funding for education
b.
increased spending on training
c.
an increase in income tax rates
d.
an increase in the number of firms
e.
a decrease in income tax rates
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 prevailing
wage but is unable to find employment. Because the minimum wage lies above the equilibrium wage, it is binding, which means it is also the
prevailing wage.
If the wage is not allowed to fall below $8.70 per hour, the size of the unskilled labor force is
workers are considered unemployed.
The unemployment rate is defined as the percentage of unemployed workers in the labor force:
Unemployment Rate = Unemployed
Labor Force
x 100
At a minimum wage of $8.70 per hour, the unemployment rate among unskilled workers is approximately
workers, and
unskilled
4
The graph shows the market for orange pickers in Florida.
What is the equilibrium wage rate and the equilibrium quantity of pickers employed?
If Florida introduces a minimum wage of
$3.00 an hour, how many orange pickers are employed and how many are unemployed?
The equilibrium wage rate of orange pickers is $4.50 an hour and the equilibrium quantity
of orange pickers employed is 3000.
If Florida introduces a minimum wage of
$3.00 an hour, pickers are employed and
pickers are unemployed.
7.50-
6.00-
4.50-
3.00-
1.50-
Wage rate (dollars per hour)
1500
2250
3000
Quantity (pickers)
3750
S
D
4500
o
Chapter 28 Solutions
Principles of Economics (12th Edition)
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