Economics: Principles & Policy
14th Edition
ISBN: 9781337696326
Author: William J. Baumol; Alan S. Blinder; John L. Solow
Publisher: Cengage Learning
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Chapter 19, Problem 8DQ
To determine
Explain the phenomenon.
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Economics: Principles & Policy
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- The government recently imposed a number of regulations on companies that will make it more expensive for companies to hire workers. What consequence will this have on the labor market?arrow_forwardAccording to the BLS, wage rates in Mexico are only about 10% of those in the US. What factors would determine whether your firm should shut down its plants in the US and relocate to Mexico, or continue to produce in the US?arrow_forwardExplain how the changes in wages can affect equilibrium.arrow_forward
- Explain four ways in which a firm might increase its profits by raising the wages it pays.arrow_forwardThe market for plumbers in Boston is currently in equilibrium. Labor supply is given by Ls = 3 x W and labor demand is given by Ld = 45 - W (where L = quantity of workers, Ls quantity of workers supplied, Ld = quantity of workers demanded, and W = wage). The plumbers have just unionized and have negotiated a wage of $25 for all plumbers in Boston. How many plumbers do you expect to be unemployed as the result of this change? Please round your answer to the nearest integer. %3D %3D %3Darrow_forwardDescribe what happens to quantity of labor supplied when wages are at the equilibrium level, above equilibrium, and below equilibrium.arrow_forward
- To save money, some fast food chains are now having their customers place their orders at computer kiosks. Will the kiosks necessarily reduce the total number of workers employed in the fast food industry?arrow_forwardBy Labor Economics theory, what are the short-run and long-run effects of immigration on the wages of native workers? Use diagrams to illustrate your arguments. Describe the evidence of these effects presented in the chapter.arrow_forwardHow might a company continue to do business without paying higher wages?arrow_forward
- Latin American and Caribbean citizens who migrate to the United States earn salaries there that are higher than what they were earning at home. Since the migrants have the same skills as when they lived in these regions, why are they apparently more productive in the United States?arrow_forwardWhich of the following is likely to shift the labor supply curve to the right, assuming all else equal? A rise in the wage rate A fall in the wage rate A rise in the immigration of workers in search of better work opportunities A fall in the population of a country due to a natural disasterarrow_forwardThe 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.)arrow_forward
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