MyLab Economics with Pearson eText -- Access Card -- for Foundations of Economics
MyLab Economics with Pearson eText -- Access Card -- for Foundations of Economics
8th Edition
ISBN: 9780134518312
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
Question
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Chapter 20, Problem 3SPPA
To determine

Equilibrium wage rate of high-skilled labor and the number of high-skilled workers employed.

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The Environmental Protection Agency (EPA) wants to investigate the value workers place on being able to work in “clean” mines over “dirty” mines. The EPA conductsa study and finds the average annual wage in clean mines to be $42,250 and the average annual wage in dirty mines to be $47,250.a. According to the EPA, how much does the average worker value working in a clean mine?b. Suppose the EPA could mandate that all dirty mines become clean mines and that all workers who were in a dirty mine must therefore accept a $5,000 pay decrease. Are these workers helped by the intervention, hurt by the intervention, or i ndifferent to the intervention?
12-2 Describe why some workers earn higher wages than other workers4. (Why Wages Differ) Why might permanent wage differ- ences occur between different markets for labor or within the same labor market?
1. Using a standard supply and demand framework and the assumption that skilled and unskilled workers are complementary (rather than substitutes), an increased supply of low skilled immigrant labor is expected to  a.lower the wages of unskilled workers, and raise the wages of skilled workers. b.lower the wages of unskilled workers, but have no impact on the wages of skilled workers. c.raise the wages of unskilled workers, and lower the wages of skilled workers. d.lower the wages of both skilled and unskilled workers.
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