Microeconomics (2nd Edition) (Pearson Series in Economics)
2nd Edition
ISBN: 9780134492049
Author: Daron Acemoglu, David Laibson, John List
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 11, Problem 5P
(a)
To determine
Factors that will encourage a baseball player to retire a year later in 2012.
(b)
To determine
Reasons for a baseball player to retire early today.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
The Federal Reserve Bank of Atlanta releases its monthly Wage Growth Tracker to study trends in wages across various industries. One interesting issue is whether wages rise faster for those who stay in their current jobs (job stayers) or those who seek new opportunities (job switchers). According to the data, job stayers tend to do better than job switchers during a recession. But when the labor market is strong, job switchers experience higher wage growth than job stayers.
a. During a recession, job stayers do better than job switchers because
a.labor demand increases and job switchers can find jobs with higher wages.
b.labor supply decreases and job switchers can find jobs with higher wages.
c.labor demand decreases and job switchers cannot find jobs with higher wages.
b. When the labor market is strong, job switchers experience higher wages than job stayers because
a.labor demand decreases and job switchers cannot find jobs with higher wages.
b.labor supply…
Explain your answer comprehensively about the question stated below:
Suppose Congress were to mandate that all employers had to offer their employees a life insurance policy worth at least $50,000. Use Economic Theory and concepts, both positively and normatively, to analyze the effects of this mandate on employee well-being.
What effect does this mandate have on the demand for labor? Use also curve to demonstrate the answer.
Identify two reasons why a wage might rise above the market equilibrium,and describe their effect on the labor market.
Chapter 11 Solutions
Microeconomics (2nd Edition) (Pearson Series in Economics)
Knowledge Booster
Similar questions
- To what extent are flexible work arrangements a positive for workers? For employers?arrow_forwardUsing a graph or equation, discuss how the end of the ban on employment for married women affects the average education level of women who were about to finish secondary school in 1973 (when the ban ended).arrow_forwardDuring the initial months of the COVID pandemic, the number of unemployed people in the State of Illinois peaked at 1,108,211 in April 2020. By December 2021, the number of unemployed in Illinois had dropped down to 324,510 people. What is the overall percent decrease in the number of unemployed people in Illinois from April 2020 to December 2021? Please round your answer the nearest percent. Show your work.arrow_forward
- If the Firm operates in a Perfectly Competitive Labor Market where the going market wage is $12, what is the profit-maximizing level of employment?If the Firm operates in a Perfectly Competitive Labor Market where the going market wage is $12, what is the profit-maximizing level of employment?arrow_forwardThe number of adults not in the labor force of a country equals 6 million, and the number of individuals employed is 5 million. If there are 12 million potential adult workers in the economy, what is the current unemployment rate in this country? 45 percent 67 percent 21 percent 55 percent If the opportunity cost of working outside the home increases, then ________ the labor supply curve, assuming all else equal. there will be a left shift in there will be a right shift in there will be an upward movement along there will be a downward movement along Which of the following statements is true? Technological innovation always leads to unemployment in an economy as a whole. Technological innovation can cause wages to fall for some workers in an economy. Technological innovation increases wages for all workers in an economy. Technological innovation reduces the demand for goods and services in an economy. If the annual inflation rate in an economy is i, then $1 borrowed at the…arrow_forwardWhy does the salary gap persist?arrow_forward
- In June 2009, at the trough of the Great Recession, the Bureau of Labor Statistics announced that of all adult Americans, 140,196,000 were employed, 14,729,000 were unemployed, and 80,729,000 were not in the labor force. a) What was the size of the labor force in 2009? Show your work. b) What was the labor-force participation rate in 2009? Show your work. c) What was the unemployment rate in 2009? Show your work.arrow_forwardJESTION 30 ch of the following includes everyone in the adult population that the Bureau of Labor Statistics counts as unem a. anyone who is not employed b. anyone who is not employed, is available for work, and has looked for work in the past 4 weeks c. anyone who is not employed, is available for work, has looked for work in the past 4 weeks, and anyone who is waiti d. anyone who is not employed, is available for work, has looked for work in the past 4 weeks, anyone who is waiting to employed part time and has searched for full time employment in the past 4 weeks QUESTION 31arrow_forwardWhat is the percentage change in real average earnings from 1965 to 2010?arrow_forward
- When the ________ interest rate is low, there are greater incentives to ________ and fewer incentives to ________. Fill itarrow_forwardAs more people from the baby boom generation retire this will cause _____ (no change in/rise/fall) in labor supply. As more people from gen Z graduate from highschool and college and enter the work force this will cause _____ (increase/decrease/no change) We can expect wages to _____ (fall/rise/stay the same)arrow_forwardIn 1931, the U.S. President was paid a salary of $75,000. Government statistics show a consumer price index of 15.2 for 1931 and 207 for 2007. President's 1931 salary was equivalent to a 2007 salary of about Group of answer choices $5,507,240 $15,525,000 $1,021,382 $1,140,000arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, IncEconomics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
- Economics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage LearningMicroeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning