Question: There is only one labour market in Profunctia. All workers have the same skills, and all firms hire workers with these skills. Use the accompanying

There is only one labour market in Profunctia. All workers have the same skills, and all firms hire workers with these skills. Use the accompanying diagram, which shows the supply of and demand for labour, to answer the following questions. Illustrate each answer with a diagram.

Wage rate $20 10 100 50 Quantity of labour (thousands)

a. What is the equilibrium wage rate in Profunctia? At this wage rate, what are the level of employment, the size of the labour force, and the unemployment rate?

b. If the government of Profunctia sets a minimum wage equal to $12, what will be the level of employment, the size of the labour force, and the unemployment rate?

c. If unions bargain with the firms in Profunctia and set a wage rate equal to $14, what will be the level of employment, the size of the labour force, and the unemployment rate?

d. If the concern for retaining workers and encouraging high-quality work leads firms to set a wage rate equal to $16, what will be the level of employment, the size of the labour force, and the unemployment rate?

Wage rate $20 10 100 50 Quantity of labour (thousands)

Step by Step Solution

★★★★★

3.44 Rating (173 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a The equilibrium wage rate is 10 At this wage rate there will be 50000 employed workers no unemploy... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Macroeconomics Principles Questions!

Dremmon Corporation reports the following information from the last fiscal year: \ table [ [ , Units ] , [ Beginning inventory of finished goods, 1 6 8 ] , [ Production during the year, 7 5 1 ] , [...

The table below shows how many workers are pared to work at various hourly wages in the for industry. It also shows the workers' marginal rev product (MRP). a. On a diagram, draw the supply of labour...

The Star Paper Division of Remington Inc. is located outside Los Angeles. A major expansion of the division's only plant was completed in April of 20A. The expansion consisted of an addition to the...

For the four basic configurations that follow, assume that the market is demanding product that must be processed by both Resource X and Resource Y for Cases I, II, and III. For Case IV, both...

6. Unemployment and Inflation End of Chapter Problem Labor force (thousands) Unemployment (thousands) Region July 2018 July 2019 July 2018 July 2019 Northeast 28,397 28,565 1,459 1,377 South 57,297...

There is only one labor market in Profunctia. All workers have the same skills, and all firms hire workers with these skills. Use the accompanying diagram, which shows the supply of and demand for...

There is only one labor market in Profunctia. All workers have the same skills and all firms hire workers with these skills. Use the accompanying diagram, which shows the supply of and demand for...

5. There is only one labor market in Profunctia. All workers have the same skills, and all firms hire workers with these skills. Use the accompanying diagram, which shows the supply of and demand for...

There is only one labor market in Profunctia. All workers have the same skills, and all firms hire workers with these skills. Use the accompanying diagram, which shows the supply o and demand for...

=+There is only one labor market in Profunctia, All workers have the same skills, and all firms hire workers with these skills. Use the accompanying diagram, which shows the supply

14. There is only one labor market in Profunctia. All workers have the same skills, and all firms hire workers with these skills. Use the accompanying diagram, which shows the supply of

In March the Klassic Clothing Company started working on a special order of fall suits ordered by Winston?s, a regional chain of specialty stores in the southeast United States. Winston?s agreed to...

A point dipole with an electric moment p oriented in the positive direction of the z axis is located at the origin of coordinates. Find the projections E, and E. of the electric field strength vector...

The budgeted indirect cost rate is the budgeted indirect costs divided by budgeted quantity of the cost allocation base. Group of answer choices True False

What is the difference between comparative financial statements and common-size comparative statements?

At a certain location, wind is blowing steadily at 10 m/s. Determine the mechanical energy of air per unit mass and the power generation potential of a wind turbine with 60-m diameter blades at that...

From the following, prepare the long-term liabilities section of a balance sheet: a. Sinking Fund .............$275,000 b. Premium on 13% bonds .......... 7,000 c. Discount on 16% bonds .............

On January 1, 201X, Acorn Corporation issued $600,000 of 10%, 20-year bonds for $509,580, yielding a market rate of 12%. Interest is paid on July 1 and December 31. Acorn uses the interest method to...

Foley Systems is considering a new investment whose data are shown below. The equipment would be depreciated on a straight-line basis over the project's 3-year life, would have a zero salvage value ,...

33. The monthly wholesale price and quantity sold of fresh squeezed orange juice during the winter months by a small Florida growers cooperative is represented by the following bivariate probability...

For each of the following, is the business a price-taking producer? Explain your answers. a. A cappuccino caf in a university town where there are dozens of very similar cappuccino cafs b. The makers...

A new vaccine against a deadly disease has just been discovered. Presently, 55 people die from the disease each year. The new vaccine will save lives, but it is not completely safe. Some recipients...

ANSWER A AND B WITH SOLUTIONS: A. Find the value of n and r of the following: If C (n, r) = 1 and P (n, r) = 120 If C (n, r) = 20 and P (n, r) = 120 If C (n, r) = 28 and P (n, r) = 56 If C (n, r) = 3...

1. Your folks just called and would like some advice from you. An insurance agent just called them and offered them the opportunity to purchase an annuity for $17,081.85 that will pay them $2,500 per...

What is the purpose for using the following techniques?: Factorial ANOVA Multiple Linear Regression Linear Regression Exploratory Factor Analysis