EBK ECONOMICS
20th Edition
ISBN: 9780077660710
Author: McConnell
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Question
Chapter 21, Problem 5RQ
To determine
Impact of elementary education on the labor supply.
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PROBLEMS 1. Workers are compensated by firms with “benefits” in addition to wages and salaries. The most prominent benefit offered by many firms is health insurance. Suppose that in 2000, workers at one steel plant were paid $20 per hour and in addition received health benefits at the rate of $4 per hour. Also suppose that by 2010 workers at that plant were paid $21 per hour but received $9 in health insurance benefits. LO17.1
By what percentage did total compensation (wages plus benefits) change at this plant from 2000 to 2010? What was the approximate average annual percentage change in total compensation?
By what percentage did wages change at this plant from 2000 to 2010? What was the approximate average annual percentage change in wages?
If workers value a dollar of health benefits as much as they value a dollar of wages, by what total percentage will they feel that their incomes have risen over this time period? What if they only consider wages when calculating their incomes?…
Labor demand and supply of labor is one of the external factors that impact compensation practices. If supply of labor is
less than the labor demand, most employers offer
to jobseekers.
Higher rate
Going rate
Lower rate
Market rate
A clothing manufacturing utilizes Merrick's Multiple Piece Rate System that sets the standard output to 100 units per week
and normal piece rate at 5 RO per unit. If Worker Z's actual weekly output is 100 units, solve earning per week.
650
О 500
O 550
O 600
ооо о
7. LO 2, 4 Suppose that a consumer can earn a
higher wage rate for working overtime. That is,
for the first q hours the consumer works, he or
she receives a real wage rate of w, and for hours
worked more than q he or she receives w, where
W2>W1. Suppose that the consumer pays no
taxes and receives no nonwage income, and he or
she is free to choose hours of work.
(a) Draw the consumer's budget constraint, and
show his or her optimal choice of consump-
tion and leisure
(b) Show that the consumer would never work
hours, or anything very close to q
Explain the intuition behind this.
(c) Determine what
hours.
happens if the overtime
wage rate w2 increases. Explain your results
in terms of income and substitution effects.
You must consider the case of a worker who
initially works overtime, and a worker who
initially does not work overtime.
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- (a) unemployment in the originating nation, (b) remittances * How might the output and income gains from immigration shown by the simple immigration model be affected by themployment in the originating nation, (b) remittances inmigrants to the home country, and (c) backflows of migrants to the home country? LO23.3 migrants to the home country? LO23.3 shown by the simple immigration model be affected byarrow_forwardFigure 9.2, U.S. Labor Market Figure 9.2 represents the U.S. labor market. Assume that labor and capital are the only factors of production. Also assume the initial supply schedule of labor is denoted by S, and consists entirely of native U.S. workers. The demand schedule of labor is denoted by Do Hourly Wage/S O O 18 Select one: O 12 O 9 So 2 Consider Figure 9.2. Policies that permit Mexican workers to freely migrate to the United States would likely be resisted by: S₁ a. U.S. capital owners b. Native U.S. workers 3 Do 6 Quantity of Labor c. U.S. capital owners and native U.S. workers d. Neither U.S. capital owners or native U.S. workersarrow_forwardFigure 3.2 Si 15 S2 10 5. D2 Di 20 30 40 Quantity of Labor In Figure 3.2, assume that we have labor market demand and supply curves of D2 and S1, respectively. What is the equilibrium wage and employment level? O $15; 30 workers O 5; 30 workers $5; 20 workers O $10; 40 workers Wage Rate ($ per day)arrow_forward
- Suppose that the demand and supply functions for a good are given as follows: Demand: 0 = 600-5P Supply: 0 Suppose now that government imposes $27 tax per unit of output on sellers. What is the burden on sellers? =-300+4P O 27 12 15arrow_forward1. PEDRO, a regular employee of a large Corporation, ABC, receives P1,000.00 per day. He worked for 8 hours - from 8 AM to 12 Noon, and 1 to 5 PM - on his Rest Day (a Wednesday), which was also declared a Special Day. . He was also required to work from 5 PM that Wednesday up to 1:00 AM the following day (Thursday). How much will the Total Wage that Pedro shall receive for the hours worked for those two days, Wednesday to Thursday?arrow_forwardThe figure shows the U.S. supply of labor curve. What would be the effect on the labor supply curve of U.S. policies that restrict immigration? O A. A rightward shift of the supply of labor curve O B. A movement downward along the supply of labor curve from a point such as A to a point such as B O C. A movement upward along the supply of labor curve from a point such as C to a point such as B O D. A leftward shift of the supply of labor curve OE. None of the above answers are correct because there would be no change in the supply of labor curve. Real wage rate (2009 dollars per hour) 100 75 50 25 0 100 LS + 400 200 300 Labor (billions of hours per year)arrow_forward
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