. Contrasting labor union lews in twe statesConsider two states that adopt afferent lews concerning labor unions.The following graph shows the lebor market in a state in the North. Initiay, the market-clearingwage there is s8.00 per hour.Suppose that the legislature in this northern state pesses laws that make Reasy for workers tojoin a union. Through collective bargaining, the union negotiatesa wege of s10.00 per hour.Use the graph input tool te help you answer the following questiens. You wil not be graded on anychanges yeumake to thi graphGraph Ingut ToolMarket for LaborWege(Dolars perhour)2.00LaborDemanded(Thousandworkers1,400LaborSuppled(Thosandsof workers)200 Enter $10.00 into the box labeled Wage on the previous graph.Hint: Be sure to pay attention to the units used on the graph.At the union wage,union workers will be employed.The following graph shows the labor market in a state in the South. The legislature in this statepasses strong "right-to-work" laws that make it very difficult for unions to organize workers, so thewage is always equal to the market-clearing value. Except for this difference in legislation, the twostates are very similar.The initial position of the graph coresponds to the initial labor market condition in the southernstate before the labor union negotiated the new, higher wage for workers in the northern state.Suppose that after the wage goes up in the northem state, some workers in the northern statelose their jobs and decide to move to the southern state.Adjust the graph to show what happens to employment and wages in the southern state.SpyDenandLABORWhich of the following groups are better off as a result of the union action in the northernstate? Check al that apply.Employers in the northern stateWorkers in the northern state employed at the union wageThe original workers in the southern stateAll workers in the northern state

The intersection of the demand and supply curves yields the market-clearing price. The price that…

Enter $10.00 into the box labeled Wage on the previous graph. Hint: Be sure to pay attention to the units used on the graph. At the union wage, |union workers will be employed. The following graph shows the labor market in a state in the South. The legisleture in this state passes strong "right-to-work" laws that make it very difficult for unions to organize workers, so the wage is always equal to the market-clearing value. Except for this difference in legislation, the bwo states are very similar. The initial position of the graph coresponds to the initial labor market condition in the southern state before the labor union negotiated the new, higher wage for workers in the northern state. Suppose that after the wage goes up in the northem state, some workers in the northern state lose their jobs and decide to move to the southern state. Adjust the graph to show what happens to employment and wages in the southern state. Spy Denand LABOR Which of the following groups are better off as a result of the union action in the northern state? Check al that apply. Employers in the northern state Workers in the northern state employed at the union wage The original workers in the southern state All workers in the northern state

Enter $10.00 into the box labeled Wage on the previous graph. Hint: Be sure to pay attention to the units used on the graph. At the union wage, |union workers will be employed. The following graph shows the labor market in a state in the South. The legisleture in this state passes strong "right-to-work" laws that make it very difficult for unions to organize workers, so the wage is always equal to the market-clearing value. Except for this difference in legislation, the bwo states are very similar. The initial position of the graph coresponds to the initial labor market condition in the southern state before the labor union negotiated the new, higher wage for workers in the northern state. Suppose that after the wage goes up in the northem state, some workers in the northern state lose their jobs and decide to move to the southern state. Adjust the graph to show what happens to employment and wages in the southern state. Spy Denand LABOR Which of the following groups are better off as a result of the union action in the northern state? Check al that apply. Employers in the northern state Workers in the northern state employed at the union wage The original workers in the southern state All workers in the northern state

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter14: Labor Markets And Income

Section: Chapter Questions

Problem 3SCQ: Table 14.12 shows the quantity demanded and supplied in the labor market for driving city buses in...

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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?
PLEASE SOLVE PART C & D ONLY Minimum Wages and Unionsa. Assume an industry without legal minimum wages and unions. Show in a diagram how the equilibriumwage W* is determined, and briefly explain all the concepts in the diagram.b. Now suppose a minimum wage, WMIN, is legislated at a level lower than W*, i.e. WMIN<W*. Show it in thediagram and explain whether the labour market outcomes in part a. change, and how.c. Now suppose a minimum wage is legislated at a level higher than W*, i.e. WMIN>W*. Show it in thediagram and explain what the labour market outcomes will be.d. Now suppose a workers’ union is created and successfully negotiates wage WUNION, which is above bothW* and WMIN, i.e. WUNION>WMIN>W*. Explain what the labour market outcomes will be compared to theprevious part.
KINDLY ANSWER quetion "d" 5) (KEY QUESTION) Minimum Wages and Unionsa. Assume an industry without legal minimum wages and unions. Show in a diagram how the equilibriumwage W* is determined, and briefly explain all the concepts in the diagram.b. Now suppose a minimum wage, WMIN, is legislated at a level lower than W*, i.e. WMIN<W*. Show it in thediagram and explain whether the labour market outcomes in part a. change, and how.c. Now suppose a minimum wage is legislated at a level higher than W*, i.e. WMIN>W*. Show it in thediagram and explain what the labour market outcomes will be.d. Now suppose a workers’ union is created and successfully negotiates wage WUNION, which is above bothW* and WMIN, i.e. WUNION>WMIN>W*. Explain what the labour market outcomes will be compared to theprevious part
(a) Solve for the equilibrium wage and employment level.(b) Graph the demand and supply curves.(c) At this equilibrium, what is your welfare/gains from trade?(d) Now, assume a minimum wage has been implemented at $20. How will this impact yourdemand? Supply?(e) How many workers are displaced by this new policy? How much “extra” unemployment occurswith this new policy? Hint: Think about the reservation wage.(f) Graph the new labor demand and supply with this minimum wage.(g) At this equilibrium, what is your new welfare? Are you better off with this change? Explain.
The way the workers’ compensation system works now, employees permanently injured on the jobreceive a payment of $X each year whether they work or not. Suppose the government were toimplement a new program in which those who did not work at all got $0.5X but those who did work got$0.5X plus workers’ compensation of 50 cents for every hour worked (of course, this subsidy would bein addition to the wages paid by their employers). What would be the change in work incentivesassociated with this change in the way workers’ compensation payments are calculated?
Consider a labour market where labour demand and supply are given by w = 240−2LD and w = 30+4LS , respectively, the competitive market equilibrium quantity of labour is 35, the wage is 170, consumer surplus is 1225 and producer surplus is 2450. 1.If the owners collude, calculate the new equilibrium quantity of labour and wage. 2.Continue with the previous part. Calculate the new consumer surplus and producer surplus. 3 .Continue with the previous part. Briefly explain if, compared to the competitive market equilibrium, the owners and/or players are better off and if the overall wellbeing of the league has increased or decreased.
Read the following extract from a news article and answer the question that follows. “Minister of labour, Thulas Nxesi, has gazetted South Africa’s new minimum wage which will take effect from 1 March 2020.The gazette states that the new national minimum wage is R20.76 – an increase of 3.8%”.Adapted from: https://businesstech.co.za/news/government/374920/6-planned-laws-that-government-has-just-announced-for-south-africa/Accessed: 21/02/2020Provide a discussion on the welfare effect of the above, that illustrates the case for when the above results in unemployment in the market for domestic workers as well as a case for when the above has no effect on the market for domestic workers. Use a diagram to support your discussion.
how could we determine the the wageminimum the government “should” impose. Will this wage minimum be the same acrossall labor markets
Name some factors that can cause a shift in the demand curve in labor markets.
Explain the logic behind the race to the bottom argument and the likely reason it has not occurred.
Will a free market tend to encourage or discourage discrimination? Explain briefly.
Using two demand and supply diagrams, one for the low-wage labor market and one for the high-wage labor market, explain how a program that increased educational levels for a substantial number of low-skill workers could reduce inflame inequality.