LABOR ECONOMICS LOOSELEAF 8/E
8th Edition
ISBN: 9781264010516
Author: BORJAS
Publisher: MCG
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Question
Chapter 10, Problem 7P
(a)
To determine
Explain the drop of wage demand from $10 to $5.
(b)
To determine
Effect of increasing the strike length in the wage demand.
(c)
To determine
Effect of increasing the strike length in the wage demand.
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If a union wishes to maximize the number of union members employed, it will
a) set a wage below the competitive wage.
b) set a wage where the elasticity of demand for labor equals one.
c) accept the competitive wage.
d) set a wage above the competitive wage.
Consider the labour markets for skilled labour and unskilled labour.
The labour demand curve for skilled workers is given by w = e(150 - 5L)/100. The labour demand curve for unskilled workers is w = 50 - 2L. The labour supply for each of the two labour markets is given by L = 20.
The effort of firm's skilled workers depends on their wage according to the following schedule:
wage (w)
20
25
30
35
40
45
Effort (e)
16
24
30
34
36
36
a) Calculate the equilibrium employment, unemployment, and wage for unskilled workers.
b) Calculate the profit-maximizing contract (w,e).
c) Calculate the equilibrium employment, unemployment, and wage for skilled workers.
d) In a single labeled graph in (w - L), illustrate the labour market equilibria for skilled and unskilled workers.
e) Calculate the cumulative income distribution for each labour market by reporting the cumulative shares for the following percentiles: 50% and 100%.
f) In a single graph, construct the Lorenz curve representing labour…
Listed are scenarios that may lead to changes in labor market conditions for chefs. Use your knowledge of labor demand and
supply curves to match each scenario to the appropriate category.
Will cause a shift in the
demand for labor
Will cause a shift in the
supply of labor
Will cause a shift in both
the demand for labor and
supply of labor
Will not result in a
curve shifting
A professional cooking tool is
invented that reduces the
number of chefs required to
produce many dishes.
The amount of training required
to work as a chef increases.
Wages for chefs increase.
Answer Bank
Chapter 10 Solutions
LABOR ECONOMICS LOOSELEAF 8/E
Ch. 10 - Prob. 1RQCh. 10 - Prob. 2RQCh. 10 - Prob. 3RQCh. 10 - Prob. 4RQCh. 10 - Prob. 5RQCh. 10 - Prob. 6RQCh. 10 - Prob. 7RQCh. 10 - Prob. 8RQCh. 10 - Prob. 9RQCh. 10 - Prob. 10RQ
Ch. 10 - Prob. 11RQCh. 10 - Prob. 1PCh. 10 - Prob. 2PCh. 10 - Prob. 3PCh. 10 - Prob. 4PCh. 10 - Prob. 5PCh. 10 - Prob. 6PCh. 10 - Prob. 7PCh. 10 - Prob. 8PCh. 10 - Prob. 9PCh. 10 - Prob. 10PCh. 10 - Prob. 11PCh. 10 - Prob. 12PCh. 10 - Prob. 13PCh. 10 - Major League Baseball players are not eligible for...Ch. 10 - Prob. 15P
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