What are the causes of inflexible or sticky wages

Q: Give two reasons why a firm might want to pay workers above the competitive wage and how can this…

A: Efficiency wages refers to the employers paying more wages to the workers. This means that the wages…

Q: Using a supply and demand diagram, illustrate and explain briefly cost–push inflation caused by a…

A: As economies emerged, goods and services were produced that required machinery and labour. For…

Q: Does the rise in automation have to mean that unemployment will grow in the long run? Explain and…

A: Many advances take the form of worker-replacing machines. We hear about self-driving vehicles,…

Q: Base on this video titled "The Great Resignation: Why Millions Of Workers Are Quitting",…

A: In the video, the prime reason of the great resignation has been of the Lack of flexibility  20%,…

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: true or false? Non-monetary aspects to a job can explain why wages may differ given that two…

A: Non-monetary benefits:- Non-monetary remuneration is defined as any sort of non-cash compensation…

Q: a) Explain how search frictions arise in the labour market.

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

Q: How do unions affect the natural rate ofunemployment?

A: Unemployment rate states the proportion of total labor force that is seeking for the job…

Q: As a result of the changes in the short run, what happens to wages? Group of answer choices (A) The…

A: Short-run(SR) is the duration of time that is limited within a specific period in the future. In…

Q: What are three factors that determine current labour supply? (Select all that apply.) A. Reservation…

A: Labor supply refers to the availability of the labor in the labor market.

Q: Assuming a perfectly competitive labor market, what should an increase in the minimum wage do to the…

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

Q: when companies elect to pay wages that are above the going market wage rate, this is likely to cause…

A: Structural employment is defined when there is a mismatch of employment between what the market need…

Q: Leo runs a bicycle repair shop. He recently examined information on wage and employment levelsand…

A: The real wages are refers to the nominal wage rates which have been adjusted for inflation

Q: Why is the WS curve upward sloping (a).When wages are set by unions (b). When wages are set by…

A: The WS curve is also known as wage setting curve.

Q: Discuss in detail the expectation on prices by labor suppliers under the following theories:…

A: Keynesian economics is a school of thought that rejects the assumptions of classical economics and…

Q: Explain why the general level of wages is high in the United States and other industrially advanced…

A: Answer - The reason that the general level of wages is high in the United States and other…

Q: Explain why labor productivity and real hourly compensation track so closely over time.

A: The labor is the individual who is willing to work at the prevailing wage rate in the economy. The…

Q: If a higher minimum wage is introduced, what happens to unemployment

A: Unemployment refers to the market condition when not all the workers are getting job or it can be…

Q: Some economists argue that unions raise prices and cause unemployment by bargaining for higher wages…

A: Answer -     Unions :- Unions are the collection of people who come together for the fulfillment of…

Q: Over the long run, ____________ per hour is the most important determinant of the average wage level…

A: Productivity: The output per hour given by the labourer is called productivity. The productivity is…

Q: With which of the theories of wages, is the name of John Stuart Mill associated?

A: Wages and productivity are a really basic and crucial part of economics. Wages are the financial…

Q: How will you justify increase in real wages in a predominantly agrarian economy such as Britain…

A: Agrarian economy is a rural economy rather than urban based. In this type of an economy people are…

Q: Karl Marx argued that an 'Industrial Reserve Army of the Unemployed' would be produced by capitalism…

A: a). There are valid justifications why capitalism produces and reproduces unemployment after some…

Q: Some Firms Struggle to Hire Despite High Unemployment Matching people with available jobs is always…

A: Even if the labor market is working properly, there tends to be unemployment. This is because…

Q: What are the main causes of unemployment in Nambia?

A: The unemployment in Namibia is worse since the 1980s. Unemployment explained by the sum of all…

Q: Which of the following statements is false? Unions can have sufficient bargaining power to push…

A: The labor demand curve is negatively sloped because it indicates the inverse relationship between…

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: Explain how the changes in wages can affect equilibrium.

A: Changes in wages may happen due to employer policies or in general by government policies. For…

Q: How might relationships between so-called insiders and outsiders contribute to downward wage…

A: According to mainstream economists, one of the major reasons behind recessions is the rigidity of…

Q: automation affect the job market over the next decade

A: Automation means the replacement of human efforts with machinary. This will help increase the…

Q: what is the relationship between wages and robbery?

A: Concept: Wages: In economics, wages refers to the price paid to the labor for the services rendered…

Q: The sticky-wage theory suggests an unexpectedly high price level lowers _____ causing firms to hire…

A: Introduction In sticky wage theory, nominal wages are sticky in the short run. When there is…

Q: What reasons do Arnold and Bowie give for doubting Maitland’s claim that improving employee wages…

A: According to Arnold and Bowie, Maitland's assumption that raising employee compensation will…

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: What claims do advocates of unions make to argue that unions are good for the economy?

A: Labour union refers to a group of an organisation that supports workers benefit and rights through…

Q: How do wages affect labor supply?

A: The labor is an important factor of production and the wage is the income earned by labor for…

Q: 1) Inadiagram of the labour market A) a temporary adverse productivity shock causes the labour…

A: Dear student, you have asked multiple questions in a single post. In such a case, I will be…

Q: automation impact the job market within the next few

A: Automation implies use of machinery to do the manual  labor and undertake the product manufacturing…

Q: Explain labour demand in short with a diagram

A: In economics, demand is the term that is used to define the need/requirement of a product or a…

Q: Explain in two ways how the equilibrium wage can be disturbed

A: Equilibrium  wage is the wage rate which equates the demand and supply of the labor. The…

Q: Which of the following is a reason why some firms do not use commission pay?  It gives workers…

A: When a firm hires workers to produce output, it needs to give compensation to the workers for their…

Q: the consumer's hours of work? What does this have to say about what we would observe about the…

A: The individual can spend the time available for two purposes: either work, or use it for leisure.