Consider the following model of the labor market in the United States. Suppose that the labor...
Consider the following model of the labor market in the United States. Suppose that the labor market consists of two parts, a market for skilled workers and the market for unskilled workers, with different demand and supply curves for each as given below. The initial wage for skilled workers is $20 per hour; the initial wage for unskilled workers is $7 per hour.
a. Draw the demand and supply curves for the two markets so that they intersect at the wages given above.
b. How does increased demand for skilled workers and a reduced demand for unskilled workers affect the initial solution?
c. How is the Lorenz curve for the United States economy affected by this development? Illustrate the old and the new Lorenz curves.
Homework Answers
Request Answer!
We need at least 10 more requests to produce the answer.
0 / 10 have requested this problem solution
The more requests, the faster the answer.
Add Answer to:
Consider the following model of the labor market in the United
States. Suppose that the labor...
3. Consider the graph of a low-skill labor market, where D is the demand for low-skilled...
3. Consider the graph of a low-skill labor market, where D is the demand for low-skilled workers by business firms, and S is the supply of native-bon U.S. workers who offer their labor services in the low-skill labor market. Show the shift that occurs with large-scale immigration of low-skilled workers into the United States. What is the effect on the wage on employment of native- born workers? Wage Rate ($ per hour) Employment (number of workers)
Suppose labor demand in the United States is w = 24 − 0.1E, where E is...
Suppose labor demand in the United States is w = 24 − 0.1E, where E is the number of workers in millions and w is the hourly wage. There are 120 million domestic U.S. low-skilled workers who supply labor inelastically. If the U.S. opened its borders to immigration, 20 million low-skill immigrants would enter the U.S. and supply labor inelastically. (a) What is the market-clearing wage if immigration is not allowed? (b) What is the market-clearing wage with open borders,...
8. Links between factor markets Consider the markets for factors of production, such as labor and...
8. Links between factor markets Consider the markets for factors of production, such as labor and capital, to produce furniture in the United States before the invention of electric motors. In the late 19th century, commercially successful electric motors became available and enabled furniture and many other goods to be produced more efficiently Assuming the cost of producing capital goods is unchanged, show how the availability of electric motors affected the market for capital in the United States on the...
8. Links between factor markets Consider the markets for factors of production, such as labor and...
8. Links between factor markets Consider the markets for factors of production, such as labor and capital, to produce furniture in the United States before the invention of electric motors. In the late 19th century, commercially successful electric motors became available and enabled furniture and many other goods to be produced more efficiently Assuming the cost of producing capital goods is unchanged, show how the availability of electric motors affected the market for capital in the United States on the...
Use a supply and demand model of the unskilled and skilled labor market to determine the...
Use a supply and demand model of the unskilled and skilled labor market to determine the effect of the following situation on inequality in the United States Suppose the interest rate on college loans increases. What would happen to inequality? I need a supply and demand graph!
Homework (Ch 19) 3. Contrasting labor union laws in two states Consider two states that adopt...
Homework (Ch 19) 3. Contrasting labor union laws in two states Consider two states that adopt different laws concerning labor unions. The following graph shows the labor market in a state in the North. Initially, the market-clearing wage is $4 per hour. Suppose that the legislature in this northern state passes laws that make it easy for workers to join a union. Through collective bargaining, the union negotiates a wage of $6 per hour. Use the black point (plus symbol)...
Problems & Applications (Ch 06) Suppose the minimum wage is $6 per hour in the market...
Problems & Applications (Ch 06) Suppose the minimum wage is $6 per hour in the market for unskilled labor, as shown on the following graph Use the grey point (star symbol) to indicate the market equilibrium wage and quantity of labor in the absence of a minimum wage. Then use the purple point (diamond symbol) to indicate the level of employment at the minimum wage provided, and use the orange point (square symbol) to indicate the quantity of labor supplied...
QUESTION 13 Wage rate (dollars per hour) 30+ 25+ 1 2 3 4 5 Labor (thousands...
QUESTION 13 Wage rate (dollars per hour) 30+ 25+ 1 2 3 4 5 Labor (thousands of hours per day) The figure above shows the demand and supply curves for high skilled (indicated by an "subscript) and kiw skilled indicated by an subscript workers In the figure above, the equilibrium wage differential between high-skilled workers and kw.skiled workers is $5.00 or less per hour more than $20.01 per hour O zero. between $6.01 and $10.00 per hour between $10.01 and...
DQ #4 We can say there are three labor markets. The unskilled labor market (manual laborers)...
DQ #4 We can say there are three labor markets. The unskilled labor market (manual laborers) tends to be the most competitive as it has no entry barriers and its wages tend to be the lowest. The semi-skilled labor market (electricians, machinists, assembly line workers) is somewhat less competitive and has some moderate entry barriers (apprenticeships, master's licenses, unions) where its wages tend to be higher than in the unskilled labor market. The highly skilled labor market (doctors, economists, lawyers...
3. Consider the graph of a low-skill labor market, where D is the demand for low-skilled workers by business firms, and S is the supply of native-bon U.S. workers who offer their labor services in the low-skill labor market. Show the shift that occurs with large-scale immigration of low-skilled workers into the United States. What is the effect on the wage on employment of native- born workers? Wage Rate ($ per hour) Employment (number of workers)
8. Links between factor markets Consider the markets for factors of production, such as labor and capital, to produce furniture in the United States before the invention of electric motors. In the late 19th century, commercially successful electric motors became available and enabled furniture and many other goods to be produced more efficiently Assuming the cost of producing capital goods is unchanged, show how the availability of electric motors affected the market for capital in the United States on the...
8. Links between factor markets Consider the markets for factors of production, such as labor and capital, to produce furniture in the United States before the invention of electric motors. In the late 19th century, commercially successful electric motors became available and enabled furniture and many other goods to be produced more efficiently Assuming the cost of producing capital goods is unchanged, show how the availability of electric motors affected the market for capital in the United States on the...
Homework (Ch 19) 3. Contrasting labor union laws in two states Consider two states that adopt different laws concerning labor unions. The following graph shows the labor market in a state in the North. Initially, the market-clearing wage is $4 per hour. Suppose that the legislature in this northern state passes laws that make it easy for workers to join a union. Through collective bargaining, the union negotiates a wage of $6 per hour. Use the black point (plus symbol)...
Problems & Applications (Ch 06) Suppose the minimum wage is $6 per hour in the market for unskilled labor, as shown on the following graph Use the grey point (star symbol) to indicate the market equilibrium wage and quantity of labor in the absence of a minimum wage. Then use the purple point (diamond symbol) to indicate the level of employment at the minimum wage provided, and use the orange point (square symbol) to indicate the quantity of labor supplied...
QUESTION 13 Wage rate (dollars per hour) 30+ 25+ 1 2 3 4 5 Labor (thousands of hours per day) The figure above shows the demand and supply curves for high skilled (indicated by an "subscript) and kiw skilled indicated by an subscript workers In the figure above, the equilibrium wage differential between high-skilled workers and kw.skiled workers is $5.00 or less per hour more than $20.01 per hour O zero. between $6.01 and $10.00 per hour between $10.01 and...
DQ #4 We can say there are three labor markets. The unskilled labor market (manual laborers) tends to be the most competitive as it has no entry barriers and its wages tend to be the lowest. The semi-skilled labor market (electricians, machinists, assembly line workers) is somewhat less competitive and has some moderate entry barriers (apprenticeships, master's licenses, unions) where its wages tend to be higher than in the unskilled labor market. The highly skilled labor market (doctors, economists, lawyers...
Most questions answered within 3 hours.
-
1.The main product of the reaction between p-cresol and Br2 /
FeBr3 is:
3-Bromo-4-methyl phenol
2-Bromo-4-methyl...
asked 59 seconds ago -
At present, concentration
of 92235U in naturally
occurring uranium deposits is approximately 0.74 %. What will the...
asked 3 minutes ago -
Question 1:
For the following reaction, 8.72 grams of nitrogen gas are
allowed to react with...
asked 6 minutes ago -
Discuss the benefits and detriments of hard water, and your
opinion on using water softeners.
asked 42 minutes ago -
For a Friedel-Crafts alkylation reaction between
1,4-dimethoxybenzene with 3-methyl-2-butanol and sulfuric acid what
product was formed...
asked 22 minutes ago -
This programming assignment needs to be written so that it can
do infix expression to postfix...
asked 27 minutes ago -
Below are the reduction half reactions for chemolithoautotrophic
denitrification, where hydrogen is a source of electrons...
asked 27 minutes ago -
On January 2, 2020, the Retail Auto Parts Company received a
notice from its primary supplier...
asked 37 minutes ago -
An electron of kinetic energy 13.0 keV moves in a circular orbit
perpendicular to a magnetic...
asked 41 minutes ago -
1. Explain how a fractionating column increases the separation
of two liquids.
2. What is an...
asked 42 minutes ago -
One of two hydrogen atoms has electrons at n = 1 Bohr orbit
while the other...
asked 44 minutes ago -
On January 1, Year 1, Sheffield Co. issued bonds with a face
value of $200,000, a...
asked 54 minutes ago