to the text In an effort to increase business in 2016, Nir-Van-A (a company that provides van rentals) decided to discount its prices. Following is financial information from 2015 and 2016. Note that minimum wage for service workers has increased in 2016. Calculate the labour cost margin for each year. Do not enter dollar signs or commas in the input box. Round your answers to 2 decimal places. Item 2016 $1,008,000 $747,000 Revenue Payroll and Related Expenses Labour Cost Margin 1.34 2015 % 1.37 $951,000 $690,000 %

to the text In an effort to increase business in 2016, Nir-Van-A (a company that provides van rentals) decided to discount its prices. Following is financial information from 2015 and 2016. Note that minimum wage for service workers has increased in 2016. Calculate the labour cost margin for each year. Do not enter dollar signs or commas in the input box. Round your answers to 2 decimal places. Item 2016 $1,008,000 $747,000 Revenue Payroll and Related Expenses Labour Cost Margin 1.34 2015 % 1.37 $951,000 $690,000 %

Principles of Macroeconomics (MindTap Course List)

7th Edition

ISBN:9781285165912

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter15: Unemployment

Section: Chapter Questions

Problem 6QCMC

See similar textbooks

Similar questions

Suppose Friendly Airlines is considering signing a long-term contract with the union representing its pilots. Friendly Airlines and the union both agree that real wages should increase by 2%. Inflation is expected to be 5%, so they agree on a 7% nominal wage increase. Now, suppose inflation turns out to be lower than expected, coming in at 4%. This would ______ (options: benefit, harm) the union and _________ (options: harm, benefit) Friendly Airlines because the real wage increase would now be ________ (options: 2%, 1%, -3%, -1%, -2%, 3%).
explain whether the given statement is true, false or uncertain. Then provide arguments to justify your selection. Workers and employers in economy expected 3% inflation rate for 2015 but actual inflation turns out to be 5%. Kylie, a casual worker with no labour contract, has remained unaffected while Susie, a fixed term employee, has become worse-off.
Manangement's snooping can raise worker wages because it can a) increase overall worker productiviity by reducing shirking. b) undercut worker moral c) be distastful to workers causing a reduction in the number of workers wanting to work d)A and C
A proposal that is attracting increasing attention is a requirement that employers provide theirworkers with paid sick leave. This problem asks you to analyze the effects of such a policy on wages andemployment in normal times.a. How, if at all, would such a policy affect labor demand? (explain using MRP)b. How, if at all, would it affect labor supply? (explain using willingness to work)c. How, if at all, would the policy affect normal employment and the normal real wage (or is itnot possible to tell)? include graphs
if a worker receives a raise in their nominal wage from $10 t0 $15 per hour at the same time the price level doubles, the worker's real rage has approximately: A: increased by 50% B: Incerased by 100% C: dECREASED BY 50% D: Decreased by 33% with explanation
Let's say you are the Director of Marketing for an American-based electronics company. You import parts for your products and sell those products both in the US and to a worldwide market. Each morning you read the Wall Street Journal and recently you came across the following column. What does this mean for your business, and how do you capitalize on the situation? Dollar Falls After U.S. Inflation Data Weaker-than-expected Labor Department numbers dent expectations for U.S. interest-rate increases By Chelsey Dulaney Updated Aug. 11, 2017 5:34 p.m. ET The data is the latest in a string of weak inflation readings that investors worry will derail the Federal Reserve’s plans to raise interest rates again this year. Markets are now pricing in just a 36% chance of another rate increase this year, down from 47% a week ago, CME Group data shows. Expectations that rates will remain lower weigh on the dollar by making U.S. assets less attractive to yield-seeking investors. “Inflation…gives…
QUESTION FOUR a) In words, explain the difference between real and nominal wages. b) Discuss the relationship between slope and elasticity of labour demand curve.c) Suppose a firm purchases labour in a competitive labour market and sells its product in a competitive product market. The firm’s elasticity of demand for labour is 0.4. Suppose further that the wage increases by 5 percent. What will happen to the amount of labour hired by the firm?
One of the common complaints of special educationteachers is that they are not allowed to teach because of all thepaperwork they are required to fill out and keep current. They onceonly had to teach, but now they have so many other duties that theydon’t feel they are doing anything well. In this case, ____ did notproduce satisfied workers. job specialization job rotation job enrichment job enlargement a narrow span ofmanagement
A worker plans to retire at the age of 65, at which time he will start collecting his retirement benefits. Then there is a sudden change in the forecast of inflation when the worker is 63 years old. In particular, inflation is now predicted to be higher than it had been expected so that the average price level of market goods and wages is now expected to be higher. What effect does this announcement have on the person’s preferred retirement agea. If retirement benefits are fully adjusted for inflation?b. If retirement benefits are not fully adjusted for inflation?
When thinking about work under the new economy (e.g., flexible work, distance work), do you think that expectations related to service might change?
Consider a broom factory that permanentlycloses because of foreign competition. If thebroom factory’s workers cannot find new jobsbecause their skills are no longer marketable,they are classified asa. seasonally unemployed.b. frictionally unemployed.c. structurally unemployed.d. cyclically unemployed.
Assume that the stock market experiences a massive rally, leading to a significant increase inhousehold wealth. Analyze the effects of this increase in household wealth:a. On employment and the real wage (the labor market). Explain and show graphically