Foundations of Economics - With MyEconLab
8th Edition
ISBN: 9780134641720
Author: BADE
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 19, Problem 4SPPA
To determine
To explain:
The effect on earning of soccer and basketball professionals due to popularity of soccer than basketball.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Name some factors that can cause a shift in the demand curve in labor markets.
Use a labor supply and demand graph to explain why college football coaches could be paid more than really good Economics instructors, even when demand for really good economics instructors is higher.
Which of the following correctly explains the effect of a variable on the labor demand curve?
A. If human capital increases, then we will move up the labor demand curve.
B. If the price of the product increases, then the labor demand curve will shift to the left.
C. If the number of firms in the market increases, then the labor demand curve will shift to the right.
D. If the wage increases, then the labor demand curve will shift to the right.
Chapter 19 Solutions
Foundations of Economics - With MyEconLab
Ch. 19 - Prob. 1SPPACh. 19 - Prob. 2SPPACh. 19 - Prob. 3SPPACh. 19 - Prob. 4SPPACh. 19 - Prob. 5SPPACh. 19 - Prob. 6SPPACh. 19 - Prob. 7SPPACh. 19 - Prob. 8SPPACh. 19 - Prob. 9SPPACh. 19 - Prob. 10SPPA
Ch. 19 - Prob. 1IAPACh. 19 - Prob. 2IAPACh. 19 - Prob. 3IAPACh. 19 - Prob. 4IAPACh. 19 - Prob. 5IAPACh. 19 - Prob. 6IAPACh. 19 - Prob. 7IAPACh. 19 - Prob. 8IAPACh. 19 - Prob. 9IAPACh. 19 - Prob. 1MCQCh. 19 - Prob. 2MCQCh. 19 - Prob. 3MCQCh. 19 - Prob. 4MCQCh. 19 - Prob. 5MCQCh. 19 - Prob. 6MCQCh. 19 - Prob. 7MCQ
Knowledge Booster
Similar questions
- 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.arrow_forwardtrue or false? The entrance of more workers into a particular labor market is likely to drive down the wage in that marketarrow_forwardWhat is the income effect when studying the supply of labor? A. a decrease in number of hours raises utility B. at greater incomes, workers purchase more goods C. as wage increases, workers choose to work fewer hours D. as wage increases, workers choose to work more hoursarrow_forward
- Q4. The graph below represents Lisena’s Landscaping Service’s demand for labor in the town of Forest Hills. The price of cutting a standard-sized residential lawn is $50 and the market wage rate for a worker is $200 per day. Answer the questions below. a. At the current market wage rate how many workers will the firm hire?b. Which economics principle can be used to explain why Lisena should NOT hire a fifth worker?c. What is the minimum number of lawns each worker should cut per day given wage rate of $200? Explain with a calculation.d. What happens to the demand for labor curve if the market price of cutting a lawn increases to $65? Explain your answer.e. What happens to the demand for labor curve if the market wage rate increases from $200 per day to $250 per day? Explain your answer.arrow_forwardOn page 104 of the third (2019) edition of Naked Economics by Charles Wheelan, Wheelan discusses the possible outcomes of minimum wage. Based on what Wheelan has written and the conversations about minimum wage in the class, which of the below statements is the LEAST likely to be correct if the minimum wage (a price floor) is placed well above the market clearing (equilibrium) wage? Group of answer choices The higher the minimum wage is set above the market clearing or equilibrium rate the more likely it is benefit all workers, as everyone's wages will have increased, and employers will not lay off workers because of the higher wages. The higher minimum wage will benefit those who continue to have a job at the higher wage, but will hurt those who are laid off because employers will hire fewer workers at the higher wage rate. In an era of global production and a global labor pool in which wages in the U.S. are higher than the wages paid to workers in countries such as Mexico, the…arrow_forwardBriefly explain the concept of the income-leisure trade-off. What would be the substitution effect and the income effect of a wage change?arrow_forward
- Ma4. 1. Labor Markets (a) Sketch a graph of a competitive labor market for fast food workers, showing a hypothetical equilibrium wage and quantity of workers. (b) On that same graph (or a new one if it gets too hard to follow), show what would happen to labor demand and/or supply and the new equilibrium from each of the following changes: i. Childcare gets much more expensive. ii. Grocery stores begin paying their employees significantly more. iii. Better training allows workers to become 15% more productive. iv. Customers become more health-conscious and try to reduce their fast food intake.arrow_forwardWhen deriving labour supply, we assumed that the substitution effect dominated the income effect. What impact would there be on labour supply if this was not the case? Briefly investigate how such a change could theoretically affect the imposition of a minimum wage. (Your answer is likely to benefit if it is supported by a diagram.)arrow_forwardWhen the supply curve is upward sloping, by practicing the minimum wage law a surplus is created in the economy. What happens when the labour supply curve is vertical? Does it still have a surplus? Surplus of what? Also, when a minimum wage law is imposed in the labour market, despite of the effects in the economy, why do the producers argue for a wage rise? Draw relevant diagram and discuss all the points raised above.!arrow_forward
- Q8 In the Canadian labour market, demand for labour can be impacted by elasticity of the product in which labour is an input. Suppose that the labour cost to total cost ratio in industry A (cannabis sector) is 14 percent, while in industry B (fertilizer sector) it is 68 percent. Other things equal, labour demand will be Multiple Choice more elastic in industry B than in A. constant in both industries A and B. relatively elastic in both industries A and B. relatively inelastic in both industries A and B. more elastic in industry A than in B.arrow_forwardConsider a competitive labor market. Using the model of how income is determined in a labor market, describe the effects on wages and number of individuals employed of an increase in the productivity of labor in that market. What will happen and why? In your answer, be sure that you describe why the supply and demand curves are shaped as they are.arrow_forwardHow would I analyze how the equilibrium wage and number of working hours will change when a company has a great demand for workers (i.e. grocery stores now) yet some current workers don't want to work as many hours? How would I explain the three cases that would depend on the relative size of change in labor demand and labor supply? For example. Case 1. Change in supply(∆LS)| = |Change in Demand(∆LD )| . Case 2: |∆LS| > |∆LD| . Case 3: |∆LS| < |∆LD| I'm trying to understand how the equilibrium wage and number of working hours will change under these different scenarios. Thanksarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning