Explain, with the aid of a diagram, the impact of the imposition of a minimum wage above the equilibrium wage in a competitive labour market. Clearly indicate any possible excess  demand or excess supply of labour, and what practical solutions could  be put in place to curb possible high levels of unemployment.

Q: Using the supply and demand of labour and the accepted jobs schedule, explain the difference between…

A: Please find the answer below.   DEMAND OF LABOUR: Businesses need labour and capital as inputs to…

Q: Describe the two possible effects that an increase in the wage rate can have on labor supply. Which…

A: Wage rates are defined as the fundamental remuneration per unit of time or output. The amount of…

Q: perfectly competitive product market and hire labour in a perfectly competitive labour market.…

A: Demand for labor is a concept that describes the amount of demand for labor that an economy or firm…

Q: Profit-maximizing firms will hire additional units of a resource up to the point at which the…

A: Marginal revenue product is the change in the total revenue due to additional unit of resource used.

Q: In general, different jobs pay different wages. One overarching reason is that different jobs have…

A: A wage is pay paid to representatives for work for an organization during a timeframe. Wages are…

Q: How does the amount of unemployment created by an increase in the minimum wage depend on the…

A: The elasticity of labor demand explains the fluctuation in quantity demanded of labor due to change…

Q: Draw a labour market diagram that represents the supply and demand of labour and explain why one of…

A: Wage rate is determined in labour market by market forces demand for labour and supply of it . When…

Q: Theoretically, when would we expect a minimum wage to increase unemployment under perfect…

A: in labour market equilibrium is determined by the demand and supply for labor. where demand and…

Q: Show the likely effects on price- and/or wage-setting behaviour as reflected in the WS/PS diagram of…

A: Hi. since there are multiple questions we will solve the first three questions.    WS is wage…

Q: Part a. What is the marginal physical product(MPP) of the third unit of labor hired? Part b. What is…

A: The marginal revenue productivity theory states that a profit maximizing firm will hire workers up…

Q: What would be the predicted impact on the labor market of a decrease in the productivity of labor?…

A: With the decrease in productivity of labor i.e. decrease in total output produced per unit of labor,…

Q: Consider an economy with two labor markets: one for manufacturing workers and one for service…

A: The labour market, applies to the production and availability of labour wherein the production is…

Q: Show the effect of each of the following events on the market for labour in the computer tablet…

A: A labour market is where workers and employees interact with one another. Employers fight to hire…

Q: Suppose the labour market is initially in equilibrium. Now consider that the government raises…

A: In this question the labour supply is that people want to provide to the firm and the labour demand…

Q: What are the effects of emigration on employment, wages, and social welfare if labor supply is not…

A: Human migration refers to the movement of people from one place to another with the intention of…

Q: Explain why the marginal product of labour equals the competitive wage when there is equilibrium in…

A: A competitive firm will continue to hire workers till Marginal Revenue Product of the Labor ie MRPL…

Q: (i) Discuss the Hedonic Theory of Compensating Wage Differentials. (ii) To what extent is the main…

A: The Hedonic Theory of Compensating Wage Differentials explains the relationship between wages and…

Q: Show the effect of each of the following events on the market for labour in the computer tablet…

A: Monopsony is a market situation where by there are many suppliers but the buyer is only one. In this…

Q: "The more easily firms can substitute labor for capital, the greater the inefficiency of minimum…

A: According to federal law, a minimum wage is the lowest wage per hour that a worker can be paid. It…

Q: Illustrate and carefully explain the impact of an increase in the income tax rate from 25percent to…

A: please find below the answer.

Q: What is the rationale behind the labour legislation framework?

A: The expression "labour legislation" is utilized to mean an assortment of regulations that manage the…

Q: Provide ONE labor demand-side reason that would explain why equilibrium wage (W*) rates in two…

A: A compensating wage differential is defined as the additional amount of income that a given worker…

Q: Present all the possible cases for which the labour supply will be vertical.

A: The labor supply curve marks the relationship between the wage rate and the labor available. The…

Q: Why wages differ   my last chance to get right, please answer correctly For each of the scenarios…

A: A wage disparity is a difference in pay between people with similar skills working in different…

Q: Some unions limit the no. of union members and require employers to hire union members only,…

A: Illustrate the equilibrium wage and quantity of labor using a diagram with the demand and supply…

Q: Q1) A prolonged and deep recession is called a........ Q2) labor demand curve A graph that…

A: 1.A prolonged and deep recession is called a depression. When recession increases to a very large…

Q: Assume workers in labour market M are qualified to work in an alternative competitive labour market…

A: The labour market, often known as the job market, is concerned with the supply and demand for…

Q: Which of the following statements is correct regarding involuntary unemployment?        When there…

A: Involuntary Unemployment  Involuntary unemployment stands for unemployment that occurs when the…

Q: "GROWTH in retail sales slowed as expected during the covid 19 pandemic"  Illustrate and explain,…

A: Answer: It is given that the growth in retail sales slowed as expected during the covid 19 pandemic.…

Q: Suppose initially that immigrant labor and native-born labor are complementary resources. Explain…

A: Substitutes and complementary goods are linked to each other in terms of price and the effects of…

Q: Illustrate and carefully explain the impact of an increase in the income tax rate from 25 percent to…

A: The demand curve for labour, under the ceteris paribus assumption, shows the amount of labor…

Q: Suggest solutions to the limitations of the Efficiency Wage Model

A: The efficiency wage theory proposes that raising wages will enhance labour productivity because…

Q: If a labour market is in equilibrium and contracts are incomplete: Employers are willing to hire any…

A: In the labor market,bit can be said that some of the contracts are incomplete because not all the…

Q: Complete the following labor demand table for a firm that is hiring labor competitively and selling…

A: The Marginal-product of labour(MPL) is the addition in total-output(Q) due to employment of one more…

Q: Can you answer this question with a drawing of both diagrams, in a model of the labour market, both…

A: Equilibrium in the labor market can be explained through following relations : Price Setting…

Q: Describe the hiring decision of a perfectly discriminating monopsonist and of a nondiscriminating…

A: In the labor force, monopsony is a non-competitive condition in which only single employer can…

Q: According to the theory of efficiency wages,a. firms may find it profitable to pay above-equilibrium…

A: Theory of efficiency wages states that employees of your organization should be paid higher than the…

Q: Consider two people - A and B - within the same labor market. Why might might permanent wage of A…

A: Wages of A and B can differ though they belong to the same labor market due to Labor market…

Q: In general, different jobs pay different wages. One overarching reason is that different jobs have…

A: Answer -1  Compensation salary refers to the additional pay given to an employee in exchange for…

Q: Give three of explanations for how efficiency wages might work.

A: Efficiency wage is the concept which states that a worker increases his productivity with the…

Q: For any given job, how do the economy-wide labour market conditions affect a worker’s bargaining…

A: The labour market, also known as the job market, is the supply and demand for labour, with employees…