Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Question
Chapter 6, Problem 22APA
a)
To determine
Impact of change in minimum wage.
b)
To determine
Increase in minimum wage and its effect.
c)
To determine
Increase in local spending by boosting minimum wage.
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Use the table below to answer the following questions.
Select one:
OA. 30
OB. 40
Wage Rate
(dollars per hour)
7
6
C. zero
D. 70
E. 20
4
3
Table 6.2.2
Quantity Supplied
(millions of hours)
88888
50
40
30
20
Refer to Table 6.2.2. What is the level of unemployment in millions of hours if the minimum wage is set at $3 per hour?
Quantity Demanded
(millions of hours)
30
40
50
60
70
4.
The graph below represents Lisena’s Landscaping Service’s demand for labor in the town of Forest Hills. The price of cutting a standard-sized residential lawn is $50 and the market wage rate for a worker is $200 per day. Answer the questions below.
a. At the current market wage rate how many workers will the firm hire?b. Which economics principle can be used to explain why Lisena should NOT hire a fifth worker?c. What is the minimum number of lawns each worker should cut per day given wage rate of $200? Explain with a calculation.d. What happens to the demand for labor curve if the market price of cutting a lawn increases to $65? Explain your answer.e. What happens to the demand for labor curve if the market wage rate increases from $200 per day to $250 per day? Explain your answer.
The graph shows the market for apple pickers in New England.
Question Viewer
what is the equilibrium wage rate and the equilibrium quantity of pickers employed?
If the New England states introduce a minimum wage of
$7.00 an hour, how many apple pickers are employed and how many are unemployed?
The equilibrium wage rate of apple pickers is $10.50 an hour and the equilibrium quantity
of apple pickers employed is 7000.
If the New England states introduce a minimum wage of
$7.00 an hour, pickers are employed and pickers are unemployed.
17.50-
14.00-
10.50-
7.00-
3.50+
Wage rate (dollars per hour)
3500
5250
7000
Quantity (pickers)
8750
S
D
10500
U
Chapter 6 Solutions
Macroeconomics
Ch. 6.1 - Prob. 1RQCh. 6.1 - Prob. 2RQCh. 6.1 - Prob. 3RQCh. 6.1 - Prob. 4RQCh. 6.2 - Prob. 1RQCh. 6.2 - Prob. 2RQCh. 6.2 - Prob. 3RQCh. 6.2 - Prob. 4RQCh. 6.2 - Prob. 5RQCh. 6.3 - Prob. 1RQ
Ch. 6.3 - Prob. 2RQCh. 6.3 - Prob. 3RQCh. 6.3 - Prob. 4RQCh. 6.3 - Prob. 5RQCh. 6.4 - Prob. 1RQCh. 6.4 - Prob. 2RQCh. 6.4 - Prob. 3RQCh. 6.4 - Prob. 4RQCh. 6.4 - Prob. 5RQCh. 6.5 - Prob. 1RQCh. 6.5 - Prob. 2RQCh. 6.5 - Prob. 3RQCh. 6.5 - Prob. 4RQCh. 6 - Prob. 1SPACh. 6 - Prob. 2SPACh. 6 - Prob. 3SPACh. 6 - Prob. 4SPACh. 6 - Taxes (Study Plan 6.3) 5. The table in the next...Ch. 6 - Prob. 6SPACh. 6 - Prob. 7SPACh. 6 - Prob. 8SPACh. 6 - Prob. 9APACh. 6 - Prob. 10APACh. 6 - Prob. 11APACh. 6 - Prob. 12APACh. 6 - Prob. 13APACh. 6 - Prob. 14APACh. 6 - Prob. 15APACh. 6 - Prob. 16APACh. 6 - Prob. 17APACh. 6 - Prob. 18APACh. 6 - Prob. 19APACh. 6 - Prob. 20APACh. 6 - Prob. 21APACh. 6 - Prob. 22APACh. 6 - Prob. 23APA
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