Draw a well labeled graph (similar to graph 10.3 on page 283 from textbook) showing the point of initial equilibrium for each of the 3 scenarios below: i. ii. iii. iv. Starting with an initial equilibrium/allocation of workers, show the impact of differential technological progress (specifically, sector 1 experiencing a higher technological progress compared to sector 2) on the allocation of workers across the sectors. Explain your answer in 2-3 sentences. Starting with an initial equilibrium/allocation of workers, show the impact of creation of Unions in sector 2 with sector 1 remaining as nonunionized on the allocation of workers across the sectors. Explain your answer in 2-3 sentences. Starting with an initial equilibrium/allocation of workers, show the impact of rise in overall population on the allocation of workers across the sectors. Explain your answer in 2-3 sentences. Do all the scenarios above result in inefficiency or dead weight loss to the society? Explain your answer in 2-3 sentences. No graph is required for this part of the answer.
Draw a well labeled graph (similar to graph 10.3 on page 283 from textbook) showing the point of initial equilibrium for each of the 3 scenarios below: i. ii. iii. iv. Starting with an initial equilibrium/allocation of workers, show the impact of differential technological progress (specifically, sector 1 experiencing a higher technological progress compared to sector 2) on the allocation of workers across the sectors. Explain your answer in 2-3 sentences. Starting with an initial equilibrium/allocation of workers, show the impact of creation of Unions in sector 2 with sector 1 remaining as nonunionized on the allocation of workers across the sectors. Explain your answer in 2-3 sentences. Starting with an initial equilibrium/allocation of workers, show the impact of rise in overall population on the allocation of workers across the sectors. Explain your answer in 2-3 sentences. Do all the scenarios above result in inefficiency or dead weight loss to the society? Explain your answer in 2-3 sentences. No graph is required for this part of the answer.
Macroeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter2: Some Tools Of The Economist
Section: Chapter Questions
Problem 15CQ
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