Economic theory states that a wage set above the equilibrium will create a surplus of labor (unemployment). Are unions creating a surplus of labor? Explain your answer. Entrepreneurs absorb the risk of starting and running a company. Is Kennedy right about allowing employers to set the wage and not the employee? Explain your answer.

A labor union is an organization of workers that works for the welfare of workers and negotiates…

Answered: Economic theory states that a wage set…

Economic theory states that a wage set above the equilibrium will create a surplus of labor (unemployment). Are unions creating a surplus of labor? Explain your answer.

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

ChapterP3: Market Structure

Section: Chapter Questions

Problem 10KC

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Question

Economic theory states that a wage set above the equilibrium will create a surplus of labor (unemployment). Are unions creating a surplus of labor? Explain your answer.

Entrepreneurs absorb the risk of starting and running a company. Is Kennedy right about allowing employers to set the wage and not the employee? Explain your answer.

Definition Definition State in which an individual is without work, despite actively seeking employment opportunities. The unemployment rate refers to the percentage of the workforce that is currently unemployed. Unemployment is one of the key indicators of the conditions prevailing in an economy. It is therefore considered a barometer that points out the condition of an economy.

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The labor supply curve is upward sloping because workers are willing to work more hours at higher wages. workers will work as many hours as possible no matter the wage. employers will reduce the hours they employ as the wage rises. employers will hire a specific quantity of labor no matter the wage.
Are unions creating a surplus of labor? Entrepreneurs asborb the risk of starting and running a company. Is Kennedy right about allowing emploers to set the wage and not the employee?
Consider an economy with two labor markets: one for manufacturing workers and one for service workers. Suppose initially that neither is unionized. Which of the following will happen to the manufacturing labor market if manufacturing workers formed a union? Check all that apply. The wage of manufacturing workers will fall. The demand for manufacturing workers will remain unchanged. The supply of manufacturing workers will increase. Some manufacturing workers will become unemployed.
Why does a profit-maximizing firm hire workers up to the point where the wage equals the value of marginal product? Show that this condition is identical to the one that requires a profit-maximizing firm to produce the level of output where the price of the output equals the marginal cost of production.
The labor supply curve is upward sloping because Question 3 options: workers are willing to work more hours at higher wages. workers will work as many hours as possible no matter the wage. employers will reduce the hours they employ as the wage rises. employers will hire a specific quantity of labor no matter the wage.
Entrepreneurs absorb the risk of starting and running a company. Is Kennedy right about allowing employers to set the wage and not the employee? Explain your answer.
Question 26 of 30 Consider the labor market for electricians. The demand curve is downward sloping and the supply curve is upward sloping. In this market, however, there is a strong labor union. Assume that the electrician's union is able to negotiate a new contract that substantially raises their member's wages. Select the correct statement. Fewer people want to work as electricians as the union increases wage. Firms hire the same number of electricians at both wages. The wage increase is unambiguously beneficial for all the electricians working before the wage increase. O A consequer of the union negotiating a higher wage is fewer jobs for electricians. 8:25 PM 46°F 12/15/2021 a