Homework Answers
The correct option is (d). At the effective mimimum wage rate there is excess supply of labour and there exist unemployment. As soon as the effective minimumum wage arate is eliminated, the demand for workers will increase i.e., there will be excess demand for workers. As a result, the wages may increase with respect to the equilibrium wage rate(W1) which was lower than the effective wage rate as shown.
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32. If the government eliminates an effective minimum wage in a competitive labor market, which of...
The imposition of a minimum wage on a competitive labor market will likely create additional employment...
The imposition of a minimum wage on a competitive labor market will likely create additional employment opportunities because some low-skilled workers will now see their wage increase. O increase unemployment of high-skilled workers as firms substitute high-skilled labor for low-skilled labor. create unemployment as some people enter the labor market while some firms reduce the quantity of labor they are willing to employ due to the increased wage. O lower the wages of workers earning more than the minimum wage.
4. Suppose that in a competitive labor market, demand for workers is Qp- 10,000 - 100W...
4. Suppose that in a competitive labor market, demand for workers is Qp- 10,000 - 100W and the labor supply is Qs 2000+190oW, where Q is the quantity of workers employed and W is the hourly wage. [io pts. each] a. What is the initial equilibrium wage and employment level? b. Suppose that the government imposes a minimum wage of s5 per hour. How many people will be employed under the new minimum wage law? Suppose that the demand for...
The imposition of a binding (effective) minimum wage above the equilibrium wage in the unskilled labor...
The imposition of a binding (effective) minimum wage above the equilibrium wage in the unskilled labor market will (x) reduce the number of unskilled persons employed because of a decrease in the quantity supplied of labor (y) increase the unemployment rate because of a decrease in the quantity demanded of labor (z) reduce employment of unskilled persons because of a decrease in the quantity demanded of labor. A. (x), (y) and (z) B. (x) and (y) only C. (x) and...
In a competitive labor market, demand for workers is QD 20,000 100W, and supply is Qs...
In a competitive labor market, demand for workers is QD 20,000 100W, and supply is Qs 4,000 + 1,900W, where Q is the quantity of workers employed and W is the hourly wage. a) What is the initial equilibrium wage and employment level? b) Suppose that the government decides that $9 per hour is the minimum allowable wage in any market. What would the new employment level be? c) What would happen to total payments to labor? d) Would there...
1. Consider a low-wage labor market. Workers in this market are not presently covered by the...
1. Consider a low-wage labor market. Workers in this market are not presently covered by the minimum wage. But the government is still considering implementing such legislation. If implemented, this law would require employers in the market to pay workers a $5 hourly wage. Suppose all workers in the market are equally productive, the current market clearing wage is $4 per hour., and that at this market- clearing wage there are 600 employed workers. Further suppose that under the minimum...
1. Refer to the table below, which describes a labor market. Wage Quantity Labor Demanded Quantity...
1. Refer to the table below, which describes a labor market. Wage Quantity Labor Demanded Quantity Labor Supplied $7.25/hr 7,000 800 $9.25/hr 6,900 3,800 $11.25/hr 6,800 6,800 $13.25/hr 6,700 9,800 $15.25/hr 6,600 12,800 $17.25/hr 6,500 15,800 What is the equilibrium wage and labor quantity in this market? Group of answer choices $13.25/hr and 9,800 $7.25/hr and 7,000 $11.25/hr and 6,800 $15.25/hr and 6,600 2. Refer to the table below, which describes a labor market. Wage Quantity Labor Demanded Quantity Labor...
2. Low skilled workers operate in a competitive market. The labor supply is Os = 20W...
2. Low skilled workers operate in a competitive market. The labor supply is Os = 20W (where W is the hourly wage) and the demand for labor is Qd = 200 - 10W (O measures the quantity hired is thousanas oi hours). a. What is the equilibrium wage and quantity of labor working in equilibrium b. If the government passes a minimum wage of $10 per hour, what will be the new quantity of labor hired? c. Will there be...
6. Low-skilled workers operate in a competitive market. The labor supply is Q 10W (where W...
6. Low-skilled workers operate in a competitive market. The labor supply is Q 10W (where W is the price of labor measured by the hourly wage) and the demand for labor is Q 240 20W. Q measures the quantity of labor hired (in thousands of hours). a. What is the equilibrium wage and quantity of low-skilled labor working in equilibrium? b Ifthe government passes a minimum wage of $9 per hour, what will be the new quantity oflabor hired will...
Question 13 1pts Suppose that the labor market for low skill jobs in California is close...
Question 13 1pts Suppose that the labor market for low skill jobs in California is close to a competitive labor market. Many of low skill labor are from Mexico and Central America. Some politicians are considering restricting immigration from these countries. This would cause a decrease in the supply of labor leading to an increase in the equilibrium wage and an increase in the equilibrium quantity of labor employed. a decrease in the supply of labor leading to an increase...
5. Minimum-wage laws and unemployment Consider the market for labor depicted by the demand and supply...
5. Minimum-wage laws and unemployment Consider the market for labor depicted by the demand and supply curves that follow. Use the calculator to help you answer the following questions. You will not be graded on any changes you make to the calculator. 0 125 250 375 500 625 750 875 1000 20.0 17.5 15.0 12.5 10.0 7.5 5.0 2.5 0 WAGE (Dollars per hour) LABOR (Thousands of workers) Demand Supply Graph Input Tool Market for Labor Wage (Dollars per hour)...
The imposition of a minimum wage on a competitive labor market will likely create additional employment opportunities because some low-skilled workers will now see their wage increase. O increase unemployment of high-skilled workers as firms substitute high-skilled labor for low-skilled labor. create unemployment as some people enter the labor market while some firms reduce the quantity of labor they are willing to employ due to the increased wage. O lower the wages of workers earning more than the minimum wage.
4. Suppose that in a competitive labor market, demand for workers is Qp- 10,000 - 100W and the labor supply is Qs 2000+190oW, where Q is the quantity of workers employed and W is the hourly wage. [io pts. each] a. What is the initial equilibrium wage and employment level? b. Suppose that the government imposes a minimum wage of s5 per hour. How many people will be employed under the new minimum wage law? Suppose that the demand for...
In a competitive labor market, demand for workers is QD 20,000 100W, and supply is Qs 4,000 + 1,900W, where Q is the quantity of workers employed and W is the hourly wage. a) What is the initial equilibrium wage and employment level? b) Suppose that the government decides that $9 per hour is the minimum allowable wage in any market. What would the new employment level be? c) What would happen to total payments to labor? d) Would there...
2. Low skilled workers operate in a competitive market. The labor supply is Os = 20W (where W is the hourly wage) and the demand for labor is Qd = 200 - 10W (O measures the quantity hired is thousanas oi hours). a. What is the equilibrium wage and quantity of labor working in equilibrium b. If the government passes a minimum wage of $10 per hour, what will be the new quantity of labor hired? c. Will there be...
6. Low-skilled workers operate in a competitive market. The labor supply is Q 10W (where W is the price of labor measured by the hourly wage) and the demand for labor is Q 240 20W. Q measures the quantity of labor hired (in thousands of hours). a. What is the equilibrium wage and quantity of low-skilled labor working in equilibrium? b Ifthe government passes a minimum wage of $9 per hour, what will be the new quantity oflabor hired will...
Question 13 1pts Suppose that the labor market for low skill jobs in California is close to a competitive labor market. Many of low skill labor are from Mexico and Central America. Some politicians are considering restricting immigration from these countries. This would cause a decrease in the supply of labor leading to an increase in the equilibrium wage and an increase in the equilibrium quantity of labor employed. a decrease in the supply of labor leading to an increase...
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