15 The diagram shows the percentages of those on low pay and those on extremely low pay in a country from 1976 to 2012. A national minimum wage was introduced in 1999. 25 20- 15- 10- 5- low paid extremely low paid introduction of minimum wage 0- 1976, 1980 1984 1988 1992 1996 2000 2004 2008 2012 year Which conclusion is consistent with the diagram? A The minimum wage helped the low paid more than the extremely low paid. B The minimum wage reduced the numbers of both low paid and extremely low paid. C The minimum wage reversed the trend in low pay of the previous 20 years. D The minimum wage was responsible for the largest reduction of low pay in the period.

15 The diagram shows the percentages of those on low pay and those on extremely low pay in a country from 1976 to 2012. A national minimum wage was introduced in 1999. 25 20- 15- 10- 5- low paid extremely low paid introduction of minimum wage 0- 1976, 1980 1984 1988 1992 1996 2000 2004 2008 2012 year Which conclusion is consistent with the diagram? A The minimum wage helped the low paid more than the extremely low paid. B The minimum wage reduced the numbers of both low paid and extremely low paid. C The minimum wage reversed the trend in low pay of the previous 20 years. D The minimum wage was responsible for the largest reduction of low pay in the period.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter16: The Markets For Labor, Capital, And Land

Section: Chapter Questions

Problem 4P

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Similar questions

Table 14.12 shows the quantity demanded and supplied in the labor market for driving city buses in the town of Unionville, where all the bus drivers belong to a union. What would the equilibrium wage and quantity be in this market if no union existed? Assume that the union has enough negotiating power to raise the wage to 4 per hour higher than it would otherwise be. Is there now excess demand or excess supply of labor?
Does a gap between the average earnings of men and women, or between whites and blacks, prove that employers are discriminating in the labor market? Explain briefly.
Will a free market tend to encourage or discourage discrimination? Explain briefly.
Other than the demand for labor, what would be another example of a 'derived demand?
Does the earnings gap between the average wages of females and the average wages of males prove labor market discrimination? Why or why not?
If immigration is reduced, what is the impact on the wage for low-skilled labor? Explain.
What is die price commonly called in the labor market?
Compared with the share of workers in most other high-income countries, is the share of U.S. workers whose wages are determined by union bargaining higher or lower? Why or why not?
What is the marginal cost of labor for a firm that operates in a competitive labor market? How does this compare with the MCL for a monopsony?
How is the poverty rate calculated?
Imagine that the government reworks the welfare policy that was affecting Jonathan in question 1, so that for each dollar someone like Jonathan earns at work, his government benefits diminish by only 30 cents. Reconstruct the table from question 1 to account for this change in policy. Draw Jonathans labor-leisure opportunity sets, both for before this welfare program is enacted and after it is enacted.
Exercise 15.2 and Exercise 15.3 asked you to describe the labor-leisure tradeoff for Jonathon. Since, in the first example, there is no monetary incentive for Jonathon to work, explain why he may choose to work anyway. Explain what the opportunity costs of working and not working might be for Jonathon in each example. Using your tables and graphs from Exercise 15.2 and Exercise 15.3, analyze how the government welfare system affects Jonathans incentive to work.