Homework Answers
A minimum wage, to be binding and effective, is imposed higher than the free-market equilibrium wage rate. At higher wage rate, firms' quantity of labor demanded falls but quantity of labor supplied rises, creating a labor market surplus leading to unemployment. Since the firms cannot quickly reduce their demand for skilled and experienced workers, when a minimum wage is imposed they mostly reduce their demand for unskilled, inexperienced and younger workers with lower productivity and efficiency. This increases the unemployment rate of younger workers.
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Question 3. (13 points) Provide some intuitive discussion as to why a minimum wage increase may...
( Question 6 of 13 A Unemployment-End of Chapter Problem a. Why may a company want...
( Question 6 of 13 A Unemployment-End of Chapter Problem a. Why may a company want to pay its workers more than the prevailing market wage? A wage above the market equilibrium may reduce employee turn-over rate for the company. will increase the productivity of employees. empowers the company to reduce the prevailing unemployment rate in the market. enables the company to increase its profit. b. A higher-than-market wage, also known as an efficiency wage, impacts employers, workers, and the...
Review “The Minimum Wage” on p.117 of the text. As you may know, this is a...
Review “The Minimum Wage” on p.117 of the text. As you may know, this is a “hot topic” now on Capitol Hill in the White House, the Congress, and on national TV with many “famous” economists. How is the topic of the minimum wage being discussed by Congress? Do you think there should be an increase in the minimum wage? How do you think it would affect unemployment? Provide specific examples to support your answers.
hi! Need some help with this question! Thanks in advance! QUESTION 16 1 points Figure 28-3...
hi! Need some help with this question! Thanks in advance!
QUESTION 16 1 points Figure 28-3 wage 10 8 6 5 4 3 2 1 10 20 30 40 50 60 70 80 90 ndreds of workers Refer to Figure 28-3. If the government imposes a minimum wage of $8, then unemployment will increase by a. 7,000 workers b. 2,000 workers. c. 4,000 workers d. 0 workers
News Analysis: Should the Minimum Wage Increase? Attempts: Do No Harm: /1 2. The connection between...
News Analysis: Should the Minimum Wage Increase? Attempts: Do No Harm: /1 2. The connection between macroeconomics and microeconomics While economists measure unemployment at the macroeconomic level, microeconomic forces are often responsible for this macro aggregate. In other words, the tie between microeconomics and macroeconomics is inevitable when discussing the level of unemployment in an economy. Suppose the following graph represents the market for unskilled labor in a fictional economy. These workers typically represent the young, inexperienced, or uneducated part...
should Congress increase the minimum wage? To what level and why or why not? Discuss what...
should Congress increase the minimum wage? To what level and why or why not? Discuss what effects raising the minimum wage would have on workers, small businesses, and the economy in general
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...
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...
The United States of America’s national minimum wage is currently at $7.25 per hour for most...
The United States of America’s national minimum wage is currently at $7.25 per hour for most occupations in the private sector. Over the past several years, support for an increase in the minimum wage has come from a wide variety of sources. Many of those who support an increase in the minimum wage believe this is one way the government should exercise its social responsibility in an attempt to reduce poverty. The following items address the idea of raising the...
There has been a lot of talk and some legislation about the minimum wage. Within the...
There has been a lot of talk and some legislation about the minimum wage. Within the framework of optimal input use, explain the impact an increase in minimum wage could have on the amount number of workers a business might hire or retain. Provide an example where we see the substitution of labor for capital in agribusiness or business
in this question,i thought at minimum wage rate 8$ rate there is more people to apply...
in this question,i thought at minimum wage rate 8$
rate there is more people to apply to jobs,but at 5$ people are
more reluctant to apply for jobs,so 8$ labor force increases but at
5$ unemployment rate would increase.
Is this approach true? Which variables ffected by setting minimum
wage price in macroeconomics? Thank you
Figure 20-1 Price (dollars per hour) $8.00 6.50 5.00 0 8 10 12 Labor (millions of workers) 47) Refer to Figure 20-1. Based on the...
( Question 6 of 13 A Unemployment-End of Chapter Problem a. Why may a company want to pay its workers more than the prevailing market wage? A wage above the market equilibrium may reduce employee turn-over rate for the company. will increase the productivity of employees. empowers the company to reduce the prevailing unemployment rate in the market. enables the company to increase its profit. b. A higher-than-market wage, also known as an efficiency wage, impacts employers, workers, and the...
hi! Need some help with this question! Thanks in advance!
QUESTION 16 1 points Figure 28-3 wage 10 8 6 5 4 3 2 1 10 20 30 40 50 60 70 80 90 ndreds of workers Refer to Figure 28-3. If the government imposes a minimum wage of $8, then unemployment will increase by a. 7,000 workers b. 2,000 workers. c. 4,000 workers d. 0 workers
News Analysis: Should the Minimum Wage Increase? Attempts: Do No Harm: /1 2. The connection between macroeconomics and microeconomics While economists measure unemployment at the macroeconomic level, microeconomic forces are often responsible for this macro aggregate. In other words, the tie between microeconomics and macroeconomics is inevitable when discussing the level of unemployment in an economy. Suppose the following graph represents the market for unskilled labor in a fictional economy. These workers typically represent the young, inexperienced, or uneducated part...
Problems & Applications (Ch 06) Suppose the minimum wage is $6 per hour in the market for unskilled labor, as shown on the following graph Use the grey point (star symbol) to indicate the market equilibrium wage and quantity of labor in the absence of a minimum wage. Then use the purple point (diamond symbol) to indicate the level of employment at the minimum wage provided, and use the orange point (square symbol) to indicate the quantity of labor supplied...
in this question,i thought at minimum wage rate 8$
rate there is more people to apply to jobs,but at 5$ people are
more reluctant to apply for jobs,so 8$ labor force increases but at
5$ unemployment rate would increase.
Is this approach true? Which variables ffected by setting minimum
wage price in macroeconomics? Thank you
Figure 20-1 Price (dollars per hour) $8.00 6.50 5.00 0 8 10 12 Labor (millions of workers) 47) Refer to Figure 20-1. Based on the...
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