EP ECONOMICS,AP EDITION-CONNECT ACCESS
20th Edition
ISBN: 9780021403455
Author: McConnell
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Question
Chapter 15.A, Problem 3ARQ
To determine
The basic areas covered in work agreement.
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Look at Figure. In the union sector, the union’s ability to raise wages from Wn to Wu decreases total employment from N1 to N2. Thus N1 − N2 workers are displaced from the union sector and will seek employment in the nonunion sector. But suppose that wages in the nonunion sector cannot fall (perhaps because of a minimum wage law). Suppose, more specifically, that they are fixed at Wn in the nonunion sector. If the union and nonunion sectors are the only two sectors in the economy, how many workers will become unemployed because of the union’s ability to raise wages in the union sector? (Hint: N1 − N2 in the union sector is the same number of workers as N3 − N1 in the nonunion sector.) a. N1 . b. N2 . c. N3 . d. N1 − N2 . e. N1 + N2
Suppose an economy consists of a union and a nonunion sector. The labour demand curve in each sector is given by: E= 600 - 15w
where w is the hourly wage and E is the level of employment. The total labour supply is inelastic and equal to 600. Workers are equally skilled and can be employed either in the union or the nonunion sector.
How do you find the competitive wage in this economy?
Consider an economy that consists of a union and non-union sector. The labour demand in each sector is given by:
E=600-25W
The total supply of labour is 700 workers, and it does not depend upon the wage. Labour and jobs are homogeneous in both sectors.
What is the market-clearing wage if both sectors are competitive? How many workers are employed in both sectors?
Suppose a monopoly union sets the wage at the union sector at £12. How many workers will be employed in the union and nonunion sectors? What wage will the workers in nonunion sector receive?
What is the union wage gap in part (b)? What would the union wage effect be if one controlled for the spillover effect?
Chapter 15 Solutions
EP ECONOMICS,AP EDITION-CONNECT ACCESS
Ch. 15.3 - Prob. 1QQCh. 15.3 - Prob. 2QQCh. 15.3 - Prob. 3QQCh. 15.3 - Prob. 4QQCh. 15.A - Prob. 1ADQCh. 15.A - Prob. 2ADQCh. 15.A - Prob. 3ADQCh. 15.A - Prob. 4ADQCh. 15.A - Prob. 5ADQCh. 15.A - Prob. 1ARQ
Ch. 15.A - Prob. 2ARQCh. 15.A - Prob. 3ARQCh. 15.A - Prob. 4ARQCh. 15.A - Prob. 1APCh. 15.A - Prob. 2APCh. 15 - Prob. 1DQCh. 15 - Prob. 2DQCh. 15 - Prob. 3DQCh. 15 - Prob. 4DQCh. 15 - Prob. 5DQCh. 15 - Prob. 6DQCh. 15 - Prob. 7DQCh. 15 - Prob. 8DQCh. 15 - Prob. 9DQCh. 15 - Prob. 10DQCh. 15 - Prob. 1RQCh. 15 - Prob. 2RQCh. 15 - Prob. 3RQCh. 15 - Prob. 4RQCh. 15 - Prob. 5RQCh. 15 - Prob. 6RQCh. 15 - Prob. 7RQCh. 15 - Prob. 1PCh. 15 - Prob. 2PCh. 15 - Prob. 3PCh. 15 - Prob. 4PCh. 15 - Prob. 5P
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