MICROECONOMICS(LL); CNCT 21 2018 >IP<
21st Edition
ISBN: 9781260389470
Author: McConnell
Publisher: MCG CUSTOM
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Question
Chapter 23, Problem 12DQ
Sub Part (a):
To determine
The equilibrium wage rate and the quantity wage ratio.
Sub Part (b):
To determine
The equilibrium wage rate and the quantity of workers of Hispanicise.
Sub Part (c):
To determine
The wage ratio.
Sub part (d):
To determine
Which workers would be hired.
Sub part (e):
To determine
The new equilibrium wage rate and the quantity wage ratio.
Sub part (f):
To determine
The equilibrium wage rate and the quantity wage ratio.
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Chapter 23 Solutions
MICROECONOMICS(LL); CNCT 21 2018 >IP<
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- Suppose the demand curve for union labor is given by the equation: L = 450 − 3W.Suppose the current wage is $20. Now suppose the union is successful in raising the wage of its members to $28. At the same time, it is able to shift the demand for labor out to: L = 510 − 3W. Has the higher wage negotiated by the union reduced the employment opportunities of its members? If so, by how much? c. Who has benefitted and who has lost as a result of this negotiation. Be specific and complete.arrow_forward. Suppose that a car dealership wishes to see if efficiency wages will help improve its salespeople’s productivity. Currently, each salesperson sells an average of one car per day while being paid $20 per hour for an eight-hour day. LO17.8 What is the current labor cost per car sold? Suppose that when the dealer raises the price of labor to $30 per hour the average number of cars sold by a salesperson increases to two per day. What is now the labor cost per car sold? By how much is it higher or lower than it was before? Has the efficiency of labor expenditures by the firm (cars sold per dollar of wages paid to salespeople) increased or decreased? Suppose that if the wage is raised a second time to $40 per hour the number of cars sold rises to an average of 2.5 per day. What is now the labor cost per car sold? If the firm’s goal is to maximize the efficiency of its labor expenditures, which of the three hourly salary rates should it use: $20 per hour, $30 per hour, or $40 per hour?…arrow_forwarda. Suppose a restaurant hires only women to wait on tables, and only men to cook the food and clean the dishes. Is this most likely to be indicative of employer, employee, consumer, or statistical discrimination? b. The dropout rate of minority and international students at U.S. colleges and universities is higher than it is for white American students. Suppose you strongly believe this is due to discrimination. Is the empirical pattern most likely indicative of employer (college administrations), employee (college faculty and staff), consumer (students), or statistical discrimination?arrow_forward
- Suppose that an additional year of schooling raised wages by 7 percent in 1970, regardless of the worker’s race or ethnicity. Suppose also that the wage differential between the average white and the average Hispanic was 36 percent. Finally, assume education is the only factor that affects productivity, and the average white worker had 12 years of schooling in 1970, while the average Hispanic worker had 9 years. By 1980, the average white worker had 13 years of education, while the average Hispanic worker had 11 years. A year of schooling still increased earnings by 7 percent, regardless of the worker’s ethnic background, and the wage differential between the average white worker and the average Hispanic worker fell to 24 percent. Was there a decrease in wage discrimination during the decade? Was there a decrease in the share of the wage differential between whites and Hispanics that can be attributed to discrimination?arrow_forwardWealth, earnings, and disposable income are just three of several ways of looking at inequality. Imagine a household that earns $80,000 per year from labor. In that year, it also receives an income of $3,000 from investments, pays $12,000 in tax, and receives $7,000 in transfers from the state. Which of the following is its market income and its disposable income? O $83,000; $71,000. O $83,000 $78,000. O $80,000; $68,000. O $80,000; $75,000. Jarrow_forwardSuppose in a particular labor market, the demand for labor is given by the equation LD = 180 – 3W and that the labor supply in this market for native-born citizens is given by LN = 3W, while the supply curve of immigrants in this market is given by LI = 2W, where L represents the number of workers, W is the wage expressed in real terms. Finally, suppose the production function can be represented by ?=100√L a. Assuming immigration is entirely prohibited, what are the equilibrium wage and employment level in this market? b. What would be the equilibrium wage and employment level in this market if immigration were completed legalized? c. How many jobs do natives lose as a result of this immigration? How much aggregate income is lost? d. Assuming the costs of capital in this market are zero, find the total profits to firms before and after immigration. What is the change in total profits? e. Compute the total output of this market before and after immigration. How much total output does…arrow_forward
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