Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN: 9781305506725
Author: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher: Cengage Learning
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Chapter 25, Problem 10CQ
To determine
Explain the statement.
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According to an article by the Wall Street Journal, the U.S. is at risk of running out of occupational therapists, railroad engineers, mathematicians, machinists and other workers. As a result, In the next 10 to 15 years, we expect U.S. employers to demand more labour than will be available, which will, in turn, constrain overall economic growth. On the top of that, U.S. president Donald J. Trump has put executive orders to ban nationals of selected countries from entering the U.S. Meanwhile, the top economic analysts and leaders believe that the country is going to strengthen and tighten its immigration polices to a much greater extent in the coming days.
a) Referring to the above extract, briefly state in a line what do you think will happen to the U.S. labour market.
b) With the help of appropriate diagrams, graphically show and briefly comment on what will happen to the U.S. real wage rate, labour hours and real GDP, due to the changes in the U.S. labour market that you stated in…
By Labor Economics theory, what are the short-run and long-run effects of immigration on the wages of native workers? Use diagrams to illustrate your arguments.
Describe the evidence of these effects presented in the chapter.
The following table shows the relationship between the number of workers employed and outputs at Wendy’s Café.
Number of Workers
Cups of Coffee Produced
(per day)
1
50
2
95
3
135
4
170
5
200
6
225
Suppose the market price of each cup of coffee is $20, and the market daily wage for each worker is $800. In order to maximize profit, how many workers should Wendy’s Café employ? Explain and show the steps of your calculations.
Chapter 25 Solutions
Economics: Private and Public Choice (MindTap Course List)
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- Based on the graph below, how many workers would the firm hire and at what wage? A. 50 workers at $8 B. 50 workers at $18 C. 80 workers at $8 D. 80 workers at $13 E. 80 workers at $18arrow_forwardf a country's working-age population declines and its wealth increases, then the labor supply curve shifts to the left if the effect of the change in wealth is bigger than the effect of the change in the working-age population. shifts to the right if the effect of the change in wealth is bigger than the effect of the change in the working-age population. shifts to the left. shifts to the right.arrow_forwardThe following table shows the relationship between the number of workers employed and outputs at Jack’s Café. Number of Workers Cups of Coffee Produced (per day) 1 50 2 95 3 135 4 170 5 200 6 225 Suppose the market price of each cup of coffee is $20, and the market daily wage for each worker is $800. In order to maximize profit, how many workers should Jack’s Café employ? Explain and show the steps of your calculations.arrow_forward
- You are given a scenario where this a change in a factor of production or a change in demand for an item. You need to explain in sentence form how this would change demand for labor. You develop a popular video game and continue to develop new versions to keep people interested in the game.arrow_forwardWhy does a fall in price of capital leads to increase in demand for labor?arrow_forwardKelsey owns a cotton candy shop that employs 7 people. The employees are paid $12 per hour, and a cotton candy sells for $3. If Kelsey is maximizing her profit (and operating in a perfectly competitive output and perfectly competitive labor market), what is the value of the marginal product of labor of the last worker she hired? What is this worker’s marginal product of labor?arrow_forward
- how will each of the following scenario impact the market for labour. workers become more concerned about the future and terefore wish to increase their hours of work, at the same time there is an increase in capital stock which makes workers more productive.arrow_forwardDiscuss labor supply and demand. Besides training and education, what are some of the things that have a significant impact on the supply and demand of labor? Explain why you believe they have such an impact. What other factors can directly influence the labor market?arrow_forwardThe marginal product of labor is the increase in total product from a Select one: a. one dollar increase in the wage rate, while holding the price of capital constant. b. one unit increase in the quantity of labor, while holding the quantity of capital constant. c. one unit increase in the quantity of labor, while also increasing the quantity of capital by one unit. d. one percent increase in the wage rate, while also increasing the price of capital by one percent.arrow_forward
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