Question 6

This is a multiple choice based question.

Choose the right answer with an explanation

QUESTION 6

How will each of the following scenarios impact the market for labor?

The government reduces payroll taxes that firms pay when they hire workers

Impact on supply of labor

1. Increase employment
2. wage rates unchanged
3. Increase wage rate.
4. Decrease wage rates name, called and changed [movement along the curve]
5. Employment unchanged.
6. Shifts outwards/to the right
7. decrease employment.
8. Shift inwards/to the left

Impact in demand for labour

1. Increase employment
2. wage rates unchanged
3. Increase wage rate.
4. Decrease wage rates name, called and changed [movement along the curve]
5. Employment unchanged.
6. Shifts outwards/to the right
7. decrease employment.
8. Shift inwards/to the left

Impact on wage rate

1. Increase employment
2. wage rates unchanged
3. Increase wage rate.
4. Decrease wage rates name, called and changed [movement along the curve]
5. Employment unchanged.
6. Shifts outwards/to the right
7. decrease employment.
8. Shift inwards/to the left

Impact on employment level

1. Increase employment
2. wage rates unchanged
3. Increase wage rate.
4. Decrease wage rates name, called and changed [movement along the curve]
5. Employment unchanged.
6. Shifts outwards/to the right
7. decrease employment.
8. Shift inwards/to the left

Question 7

How will each of the following scenarios impact the market for labor?

Thecountry receives an influx of new immigrants

Impact on supply of labor

1. Increase employment
2. wage rates unchanged
3. Increase wage rate.
4. Decrease wage rates name, called and changed [movement along the curve]
5. Employment unchanged.
6. Shifts outwards/to the right
7. decrease employment.
8. Shift inwards/to the left

Impact in demand for labour

1. Increase employment
2. wage rates unchanged
3. Increase wage rate.
4. Decrease wage rates name, called and changed [movement along the curve]
5. Employment unchanged.
6. Shifts outwards/to the right
7. decrease employment.
8. Shift inwards/to the left

Impact on wage rate

1. Increase employment
2. wage rates unchanged
3. Increase wage rate.
4. Decrease wage rates name, called and changed [movement along the curve]
5. Employment unchanged.
6. Shifts outwards/to the right
7. decrease employment.
8. Shift inwards/to the left

Impact on employment level

1. Increase employment
2. wage rates unchanged
3. Increase wage rate.
4. Decrease wage rates name, called and changed [movement along the curve]
5. Employment unchanged.
6. Shifts outwards/to the right
7. decrease employment.
8. Shift inwards/to the left