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 3.1P
Sub part (a):
To determine
Quantity of labor supplied, number of unemployed and the
Sub part (b):
To determine
Total employment, labor force, and the employment rate.
Sub part (c):
To determine
Changes in the labor market
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Students have asked these similar questions
The market for plumbers in Boston is currently
in equilibrium. Labor supply is given by Ls = 3
x W and labor demand is given by Ld = 45 -
W (where L = quantity of workers, Ls
quantity of workers supplied, Ld = quantity of
workers demanded, and W = wage). The
plumbers have just unionized and have
negotiated a wage of $25 for all plumbers in
Boston. How many plumbers do you expect
to be unemployed as the result of this
change? Please round your answer to the
nearest integer.
%3D
%3D
%3D
The adjacent graph shows the initial labor supply curve (LS₁), initial labor demand curve (LD₁), and the
initial labor market equilibrium (E₁) of an economy which is in a recession.
Using the multi-point curve drawing tool, show the impact of introducing a wage subsidy (s) on this
economy by shifting the appropriate curve, and label the new curve accordingly.
Carefully follow the instructions above and only draw the required objects. Use the fewest points
possible in achieving the desired outcome.
Which of the following statements are correct in describing the efficiency of new public expenditures?
(Check all that apply.)
A. Special interest groups always make sure that wasteful projects with negative social value
never get funded.
B.
Many of the projects with the highest social return have been funded already, raising the
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The legislature in a state in the South passes strong "right-to-work" laws that make it very difficult for unions to organize workers, so the wage is always equal to the market-clearing value. Except for this difference in legislation, the northern and southern states are very similar.The initial position of a supply-and-demand graph corresponds to the initial labor market condition in the southern state before the labor union negotiated the new, higher wage for workers in the northern state.Suppose that after the wage goes up in the northern state, some workers in the northern state lose their jobs and decide to move to the southern state.
Which of the following groups are better off as a result of the union action in the northern state? (select all that apply)
a) The original workers in the southern state
b) Workers in the northern state employed at the union wage
c) Employers in the northern state
d) Workers who find new jobs in the southern state
Chapter 28 Solutions
Principles of Economics (12th Edition)
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