plete the following sentences: In insurance markets, from low-risk customers. In insurance markets, ✓ can arise if individuals may change their behavior after the insurance is bought, so that they behave in a more high-risk manner than they did before. In labor markets, candidates from low-skill job-candidates. In labor markets, workers ✓ can arise if insurers can't tell high-risk customers ✓ can arise if hiring firms can't tell high-skill job- ✓ can arise if managers can't observe the effort of

plete the following sentences: In insurance markets, from low-risk customers. In insurance markets, ✓ can arise if individuals may change their behavior after the insurance is bought, so that they behave in a more high-risk manner than they did before. In labor markets, candidates from low-skill job-candidates. In labor markets, workers ✓ can arise if insurers can't tell high-risk customers ✓ can arise if hiring firms can't tell high-skill job- ✓ can arise if managers can't observe the effort of

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter4: Labor And Financial Markets

Section: Chapter Questions

Problem 28P: Identify each of the following as involving either demand or supply. Draw a circular flow diagram...

See similar textbooks

Similar questions

(Please explain with graphic) Suppose that a consumer cannot vary hours of work as he or she chooses. In particular, he or she must choose between working q hours and not working at all, where q > 0. Suppose that dividend income is zero, and that the consumer pays a tax T if he or she works, and receives a benefit b when not working, interpreted as an unemployment insurance payment. a. If the wage rate increases, how does this affect the consumer’s hours of work? What does this have to say about what we would observe about the behavior of actual consumers when wages change? Explained also with the graph b. Suppose that the unemployment insurance benefit increases. How will this affect hours of work? Explain the implications of this for unemployment insurance programs. Explained also with the graph
How do minimum wages affect wages, employment, and unemployment? In a competitive labor market, the demand for workers is given as QD = 10,000 - 100W, and the supply of workers is given as QS = 2,000 + 1,900W, where Q is the quantity of workers employed and W is the hourly wage. What is the initial equilibrium wage and employment level? Suppose that the government decides that $5 per hour is the minimum allowable wage in any market. How would this new minimum wage alter this market? What would the new employment level be? What would happen to total payments to labor? Would there be any excess supply of labor? If so, how much?
“The Prime Minister claims that funding the increase in NHS and social care spending by national insurance [paying higher NICs] is preferable, because firms pay part of the cost. This is a fiction. In the long run the burden of payroll taxes, even those paid by companies, falls on workers, whose wages fall as their employers’ tax bills rise.” The Economist 11-09-202. Is “The Economist” right in its counter-claim? (Hint: use a market equilibrium model of demand and supply for labour)
The basic difference between macroeconomics and microeconomics is that? a.macroeconomics is concerned with policy decisions, while microeconomics applies only to theory. b.microeconomics is concerned with the forest (aggregate markets), while macroeconomics is concerned with the trees (subcomponents). c.macroeconomics is concerned with the forest (aggregate markets), while microeconomics is concerned with the individual trees (subcomponents). d.opportunity cost is applicable to macroeconomics, and the fallacy of composition relates to microeconomics.
What would happen to wages and number of individuals employed in that market if new law required all businesses in that market and other markets to provide their employees a better health insurance policy? Why? Use your analysis to explain who actually pays the costs of health insurance premiums in competitive labor markets.
Table 4.6 shows the amount of savings and barrowing in a market for loans lo purchase homes, measured in millions of dollars, at various interest rates. What is the equilibrium interest rate and quantity in the capital financial market? How can you tell? Now, imagine that because of a shift in the perceptions of foreign investors, the supply curve shifts so that there will be 10 million less supplied at every interest rate. Calculate the new equilibrium interest rate and quantity, and explain why the direction of the interest tale shift makes intuitive sense.
Discuss the role of market mechanism in economic
Government interventions are as a result of inefficient markets .This implies that inequalities in wealth that arise from from efficient markets do not warrant government interventions. True or false, and explain
A researcher gave sports-card traders a sports card in exchange for their participation in thestudy. There were two possible cards, A and B. Each participant randomly received one ofthe two cards, and was then asked whether she would like to exchange it for the other card.a) By neoclassical (traditional economics) logic, approximately what percentage ofparticipants should exchange? Why? (Hint, the reason does not depend on whetherthe two cards are of equal value.)b) Among inexperienced traders, 6.8% make the exchange. Explain this phenomenon using prospect theory.c) Among experienced traders, 46.7% make the exchange. Why might experiencedtraders behave differently from inexperienced ones?
In Palm Springs, suppose the real estate business is highly competitive. There are hundreds of realtors, including brokerage companies and independent agents. Also, we know that the state has NO law or regulation about how the commission is charged. In such a competitive market, who sets the realtor commission rate ____? A. The largest realtors in the city decides the commission rate. B. The smallest realtors in the city decides the commission rate. C. The realtors used the commission rate in other states. D. The collective forces of all customers and realtors in the city decide the rate.
Senator Ernest Hollings once wrote that "consumers do not benefit from lower-priced imports. Glance through some mail-order catalogs and you'll see that consumers pay exactly the same price for clothing whether it is U.S.-made or imported."Is the statement that the Senator made a true statement or a false statement? True False
Consider an economy that lacks any safety regulations. After a review of various incidences of workplace injuries, the government in this economy concludes that workers may not be optimally choosing jobs based on wages and safety. That is to say, workers seem to be accepting jobs that don't pay a high enough wage given the level of safety (or, put another way, jobs that aren't safe enough given the wage paid). This government is open to implementing new policies that would help workers make more optimal wage-safety choices. However, it strongly prefers avoiding the implementation of safety regulations on employers. For each of the following underlying causes of the wage-safety issue, describe a potential policy that could help resolve it. Given this government's aversion to implementing safety regulations, use "safety regulations" as a policy response to only one of these causes. a) Imperfect information among workers b) Imperfect competition between firms c) Workers experiencing the…