SnabustionsDashboardor EducationThe figures given below show the demand (D)and supply (S) curves of labor in two different markets.Figure 16.3Wage Rate1812Market ASQ₁ Quantity (Hours)Wage Rate27D1812#tvMarket BQ₁DWhich of the following is a reason for the wage differential shown in Figure 16.3?Quantity (Hours)O Market A represents the market for a risky occupation.O Working conditions offered by the firms in Market B are uncongenial.O The workers in Market B are unionized whereas the workers in Market A are not.O Market B hires a larger number of skilled workers than Market A.O The workers in Market B are more productive than the workers in Market A.AQDaydreamerAa

Labour demand and supply are determined by the labour market. Workers and businesses are both labour…

The figures given below show the demand (D)and supply (S) curves of labor in two different markets. Figure 16.3 Wage Rate 18 12 Market A S Q₁ Quantity (Hours) Wage Rate D 18 12 Market B Q₁ D Quantity (Hours) Which of the following is a reason for the wage differential shown in Figure 16.3? S O Market A represents the market for a risky occupation. O Working conditions offered by the firms in Market B are uncongenial. O The workers in Market B are unionized whereas the workers in Market A are not. Market B hires a larger number of skilled workers than Market A. O The workers in Market B are more productive than the workers in Market A

The figures given below show the demand (D)and supply (S) curves of labor in two different markets. Figure 16.3 Wage Rate 18 12 Market A S Q₁ Quantity (Hours) Wage Rate D 18 12 Market B Q₁ D Quantity (Hours) Which of the following is a reason for the wage differential shown in Figure 16.3? S O Market A represents the market for a risky occupation. O Working conditions offered by the firms in Market B are uncongenial. O The workers in Market B are unionized whereas the workers in Market A are not. Market B hires a larger number of skilled workers than Market A. O The workers in Market B are more productive than the workers in Market A

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter19: Earnings And Discrimination

Section19.2: The Economics Of Discrimination

Problem 2QQ

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Consider the representative consumer who decides consumption and leisure. Theenvironment is the same as in Lecture 5. Keep the same notation. The preference is givenby U (C,L) = αln C + (1 −α) ln L. Assume h = 1, i.e., the time endowment is one day.(a) Write down the utility maximization problem.(b) Derive the demand for consumption and the supply for labour.(c) Suppose the non-wage income π −T increases while the wage rate w falls at the sametime. The size of the changes can be different. Determine the effects on consumptiondemand and labour supply (i.e., leisure demand). Use the indifference map to explainyour results in terms of income and substitution effects for the following cases:(i) The increase in π −T exactly cancels out the drop in w, i.e., |∆ (π −T)|= |∆w|.(ii) The increase in π −T is greater than the drop in w, i.e., |∆ (π −T)|> |∆w|.(iii) The increase in π −T is smaller than the drop in w, i.e., |∆ (π −T)|< |∆w|.(d) Suppose the utility function is Cobb-Douglas: U…
Paying soldiers more who are in combat zones is an example of? O wage discrimination O compensating differentials O human capital effect O segmented market effect 111
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