A proposal that is attracting increasing attention is a requirement that employers provide their workers with paid sick leave. This problem asks you to analyze the effects of such a policy on wages and employment in normal times. a. How, if at all, would such a policy affect labor demand? (explain using MRP) b. How, if at all, would it affect labor supply? (explain using willingness to work) c. How, if at all, would the policy affect normal employment and the normal real wage (or is it not possible to tell)?

Why do minimum wage laws cause unemployment? Explain, using a supply anddemand diagram.

Calculate MPL & MRP to determine how many employees the firm should hire. 1) Calculate MPL and the MRP of the business. We can assume that price = $3 and that the business must pay a wage to its employees of $20 per day. # of employees: Output MPL MRP 1 90 120 132 4 140 5 142 6 143 A*Based on these numbers, how many employees should this business use? Explain your answer. B*Show what the graph would like this for this firm if we have lines for wage and MRP. Show where they would cross and the optimal number of employees used also C*Explain what you think would happen if demand went up for the product and now price goes up to $4. LO

Q1). Suppose the labor market is initially at its equilibrium, i.e., the labor supplied equals the labor demanded. Now suppose IBM develops a new computer chip that makes computer incredibly faster. Explain and show graphically how the arrival of a new, more productive technology affects the labor market. Draw the full graph and provide a detailed explanation of the effect. Label the axes/curves, explain why either the aggregate labor demand curve or the aggregate labor supply curve shifts and describe the economic mechanism that moves the economy from the old to the new equilibrium.

The table below shows levels of employment (Labor), the marginal product at each of those levels, and the price at which the firm can sell output in a perfectly competitive market. Labor Marginal Product of Labor Price of the Product Value of the Marginal Product 1 7 $3 6 $3 3 $3 4 4 $3 3 $3 a) Complete the table finding the Value of the Marginal Product (show your work!). b) If the wage rate is $15, what is the firm's profit maximizing level of employment? JUSTIFY your answer! 2.

Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. WAGE (Dollars per hour) 20 18 16 14 12 10 2 0 Supply Demand 0 50 100 150 200 250 300 350 400 450 500 LABOR (Hundreds of workers) Graph Input Tool Market for Labor in the Fast Food Industry Wage (Dollars per hour) Labor Demanded (Hundreds of workers) 6 500 Labor Supplied (Hundreds of workers) ? 0

Please refer to the images below and then answer the question. Refer to  'Pay in the Military'. How has the military responded to a shortage of skilled military personnel in the past? (Show any two steps being taken).

Problem 2: In a labor market, demand and supply curves are given by these equations: Demand: LD = 60 - 5W Supply: Ls = 5W a. Calculate wages and employment in Equilibrium Draw a graph describing this market b. c. What happens in this market if w= 8 ? d. What happens in this market if w=4?

Related to the theory of equilibrium in the labor market. Describe the impact of the following policies on equilibrium in the labor market in detail (Assumption: Labor supply is elastic): a. Payroll Tax imposed on companies.b. Imposition of Income Tax which is borne by employees.c. Income Subsidy Imposition (Payroll Subsidy)

Describe the factors that could cause an increase in the wage rate of workers.