A local government project requires 30 workers for a year from a market in which currently 100 workers are employed, 50 are unemployed, and the annual wage is $40K. The MEBT is 0.2. a) Draw a figure illustrating the state of the market. b) Calculate the opportunity cost of hiring the workers.

A local government project requires 30 workers for a year from a market in which currently 100 workers are employed, 50 are unemployed, and the annual wage is $40K. The MEBT is 0.2. a) Draw a figure illustrating the state of the market. b) Calculate the opportunity cost of hiring the workers.

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter13: Factor Markets: With Emphasis On The Labor Market

Section: Chapter Questions

Problem 9QP

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Question

A local government project requires 30 workers for a year from a market in which currently
100 workers are employed, 50 are unemployed, and the annual wage is $40K. The MEBT is 0.2.
a) Draw a figure illustrating the state of the market.
b) Calculate the opportunity cost of hiring the workers.

Definition Definition State in which an individual is without work, despite actively seeking employment opportunities. The unemployment rate refers to the percentage of the workforce that is currently unemployed. Unemployment is one of the key indicators of the conditions prevailing in an economy. It is therefore considered a barometer that points out the condition of an economy.

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