Microeconomics (2nd Edition) (Pearson Series in Economics)
2nd Edition
ISBN: 9780134492049
Author: Daron Acemoglu, David Laibson, John List
Publisher: PEARSON
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Question
Chapter 11, Problem 7P
(a)
To determine
A downward sloping labor
(b)
To determine
Point where average productivity is maximized.
(c)
To determine
Create a labor supply curve and explain why the intersection of labor demand and supply curve gives us the most efficient wage.
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This figure below shows the labor market for automobile workers. The curve labeled S is the labor supply curve, and the curves labeled D1 and D2 are the labor demand
curves. On the horizontal axis, L represents the quantity of labor in the market.
D2
D1
Refer to Figure . Which of the following is a possible explanation of the shift of the labor-demand curve from D1 to D2?
Select one:
a.Large segments of the population changed their tastes regarding leisure versus work.
b.The wage earned by automobile workers increased.
c.The opportunity cost of leisure,
perceived by automobile workers, decreased.
d.The price of automobiles increased.
The graph above shows a labor market where the downward-sloping curve is firm demand for labor and the upward-sloping curve is the worker supply curve. The vertical axis shows the hourly wage and the horizontal axis shows the number of full-time workers. Suppose a minimum wage of $9 is instituted. How many unemployed workers will result from the minimum wage? (Note: An unemployed worker is anyone who wants to work but cannot find a job.)
Explain your answer comprehensively about the question stated below:
Suppose Congress were to mandate that all employers had to offer their employees a life insurance policy worth at least $50,000. Use Economic Theory and concepts, both positively and normatively, to analyze the effects of this mandate on employee well-being.
What effect does this mandate have on the demand for labor? Use also curve to demonstrate the answer.
Chapter 11 Solutions
Microeconomics (2nd Edition) (Pearson Series in Economics)
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