Labor Economics
7th Edition
ISBN: 9780078021886
Author: George J Borjas
Publisher: McGraw-Hill Education
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Question
Chapter 3, Problem 2P
(a)
To determine
Explain the apparent shift in fundamental economic behavior in United States.
(b)
To determine
Explain the authenticity of the statement.
(c)
To determine
Explain the changes in the ratio from 1990 to today.
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Trinidad and Tobago's minimum wage rate was TT$15.00 in 2015. However, a new minimum wage of $17.50 took effect from 2019.
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This question is under the Microeconomic Analysis topic.
(a) How does economics describe or define discrimination in general?
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- (c) Let us now turn to the labor market for grocery store workers in Little town. Recently one of the last two grocery stores in Little town closed leaving only one employer for grocery store workers in this area. This labor market is not very competitive. What type of market structure is this? (d) Draw a typical supply curve (i.e. average expenditure), marginal expenditure, and demand for the grocery store in Little Town. Label the equilibrium wage and number of grocery store workers. (e) Suppose that some time has passed and the population has grown in Little Town and there are now many grocery stores. Now suppose that the grocery store workers unionize. Draw a graph to depict the equilibrium wage and number of workers in this new market.arrow_forwardNeed some help please and thank youarrow_forwardD6)arrow_forward
- (b) Under what circumstances is a firm a price taker in its labour market? What is the effect of introducing a minimum wage in a perfectly competitive market?arrow_forwardComplete the worksheet and Please answer only question 4 and 5 sub parts thank you.arrow_forwardCan someone please help me answer part b please? Refer to the table in the second attached image to help solve the problem. Thank you!arrow_forward
- Problem 2 Let's assume you’ve found the following labor demand and supply curves: Lp 30 – w Ls = 2w (a) Solve for the equilibrium wage and employment level. (b) Graph the demand and supply curves. (c) At this equilibrium, what is your welfare/gains from trade? (d) Now, assume a minimum wage has been implemented at $20. How will this impact your demand? Supply? (e) How many workers are displaced by this new policy? How much “extra" unemployment occurs with this new policy? Hint: Think about the reservation wage. (f) Graph the new labor demand and supply with this minimum wage. (g) At this equilibrium, what is your new welfare? Are you better off with this change? Explain.arrow_forwardDescribe the original rationale and purpose of the creation of a “minimum wage. When did this happen and how many times has the rate been raised? Why is the rate raised at different times in our economic history? Were ethical considerations included in the decisions to raise the rates historically?arrow_forwardWhich of the diagrams illustrates the effect of an increase in automobile worker wages on the market for automobiles? i dont understand why it would be D.arrow_forward
- (a) Solve for the equilibrium wage and employment level.(b) Graph the demand and supply curves.(c) At this equilibrium, what is your welfare/gains from trade?(d) Now, assume a minimum wage has been implemented at $20. How will this impact yourdemand? Supply?(e) How many workers are displaced by this new policy? How much “extra” unemployment occurswith this new policy? Hint: Think about the reservation wage.(f) Graph the new labor demand and supply with this minimum wage.(g) At this equilibrium, what is your new welfare? Are you better off with this change? Explain.arrow_forwardincludes the wages paid to workers, the cost of any benefits the worker receives, and other expenses related to employing a worker. A) The price of labor (B) Marginal revenue product (C) The wage Take-home payarrow_forwardAnswer question 7arrow_forward
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