LABOR ECONOMICS
8th Edition
ISBN: 9781260004724
Author: BORJAS
Publisher: RENT MCG
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Question
Chapter 3, Problem 2P
(a)
To determine
Explain the apparent shift in fundamental economic behavior in United States.
(b)
To determine
Explain the authenticity of the statement.
(c)
To determine
Explain the changes in the ratio from 1990 to today.
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This question is under the Microeconomic Analysis topic.
(a) How does economics describe or define discrimination in general?
(b) What are some typical costs that would come about in an economy from labor market discrimination?
03. If Fig. A represents the market for unskilled labor, what will be the impact of the imposition of minimum wage of $18?
(a) Real wages (including all benefits) will definitely increase from $14 to $18.
(b) Employment will decline from 12 to 8.
(c) Unemployment will increase by 12.
(d) All of the above.
(e) Only (b) and (c) are correct.
(c) Let us now turn to the labor market for grocery store workers in Little town. Recently one of the last two grocery stores in Little town closed leaving only one employer for grocery store workers in this area. This labor market is not very competitive. What type of market structure is this?
(d) Draw a typical supply curve (i.e. average expenditure), marginal expenditure, and demand for the grocery store in Little Town. Label the equilibrium wage and number of grocery store workers.
(e) Suppose that some time has passed and the population has grown in Little Town and there are now many grocery stores. Now suppose that the grocery store workers unionize. Draw a graph to depict the equilibrium wage and number of workers in this new market.
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