WAGEThe following graph shows the labor market in a state in the East. Suppose the legislature in this state passes strong "right-to-work" laws that make itvery difficult for unions to organize workers, so the wage is always equal to the market-clearing value. Assume that with the exception of thisdifference in legislation, the western and eastern states are extremely similar.The initial position of the graph corresponds to the initial labor market condition in the eastern state before the labor union negotiated the new, higherwage for workers in the western state.Suppose that after the wage goes up in the western state, some workers in the western state lose their jobs and decide to move to the eastern state.Adjust the graph to show what happens to employment and wages in the eastern state.LABORSupplyDemandDemand°Supply(?)Which of the following groups are better off as a result of the union action in the western state? Check all that apply.Workers in the western state employed at the union wageEmployers in the western stateWorkers who find new jobs in the eastern stateThe original workers in the eastern state

A-proach to solving the question: Detailed explanation: Examples: Key references:

Answered: WAGE The following graph shows the…

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter11: Labor Markets

Section: Chapter Questions

Problem 2SQP

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Consider two hypothetical states that operate under different laws goveringsborunione The following graph shows the labor market in a state in the West. Initially, the market-clearing wage in this state is $0.00 per hour. Now, suppon that the General Assembly in this western state passes a law that makes it easier for workers to join a union. Through collective bargaining, the union negotiates an hourly wage of $10.00 Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. LABOR (T Supply Demand Enter $10.00 Into the box labeled Wage on the previous graph. Hint: nur to pay attention to the units used on the graph At the unia wage, www Graph Input Tool Market for Labor Wage Labor Demanded (Thousands of union workers will be employed. Adjust the graph to show what happens to employment and wages in the eastern state 27 The following graph showe the labor market in a state in the East. Suppose the legislature in…
It has been argued by some that immigration reduces job opportunities for native-born workers. Based on our understanding of labor markets, we would conclude that This statement is generally inconsistent with economic logic because wages do not differe from country to country and immigration is generally not economically logical. this statement is generally consistent with economic logic becuase there are only a fixed number of jobs available and immigrants are willing to work for lower pay than native born workers. This statement is generally inconsistent with economic logic since more supply can lower wages and induce additional labor demand. This statement is generally consistent with economic logic because when firms create new jobs they have a need for foreign workers with different edcuational skils than native born workers.
Does the demand curve shift on a labor market supply and demand graph when the baby boomers reitre?
Describe, with an aid of a graph, the effect of an increase in the price of trucks on the equilibrium wage rate and equilibrium level of employment in the market for truck drivers. Dentify the two different categories of trade unions and clearly distinguishbetween them. ( Use an example of each category of trade union to support your answer.) Briefly describe any three reasons why labour markets may be imperfectlycompetitive.
Consider an economy with two labor markets—onefor manufacturing workers and one for serviceworkers. Suppose initially that neither is unionized.a. If manufacturing workers formed a union, whatwould you expect to happen to the wages andemployment in manufacturing?b. How would these changes in the manufacturinglabor market affect the supply of labor in themarket for service workers? What would happento the equilibrium wage and employment in thislabor market?
Policymakers sometimes propose laws requiringfirms to give workers certain fringe benefits, such ashealth insurance or paid parental leave. Let’s considerthe effects of such a policy on the labor market.a. Suppose that a law required firms to give eachworker $3 of fringe benefits for every hour that theworker is employed by the firm. How does this lawaffect the marginal profit that a firm earns from eachworker at a given cash wage? How does the lawaffect the demand curve for labor? Draw your answeron a graph with the cash wage on the vertical axis.b. If there is no change in labor supply, how wouldthis law affect employment and wages?c. Why might the labor-supply curve shift inresponse to this law? Would this shift in laborsupply raise or lower the impact of the law onwages and employment?d. As discussed in Chapter 6, minimum-wage lawskeep the wages of some workers, particularlythe unskilled and inexperienced, above theequilibrium level. What effect would a fringebenefit mandate have…
Think about the labor market for orthodontists in the United States. Suppose a union is organized, and it successfully increases job qualification standards, meaning orthodontists have to acquire additional skills to meet the new standard. Assume the value of the marginal product does not change. All else equal, which labor market curve is impacted by the organization of a union and what happens to orthodontists' wages : and employment? labor demand shifts left; wage decreases and employment decreases O labor demand shifts right; wage increases and employment increases O labor supply shifts left; wage decreases and employment increases O labor supply shifts right; wage increases and employment decreases O labor supply shifts left; wage increases and employment decreases
K 8.00- 7.60- 7.20 6.80- 6.40- OA. B, A OB. A; A OC. B; B O D. A; B Market A 0 400 800 1200 Quantity S D a S 8.00- 7.60- 7.20 6.80 6.40 0 Market B 400 800 1200 Quantity S D Use the supply and demand diagrams for labour markets A and B given above to answer the following question. If a minimum wage of $7.20 is imposed on both markets, then the reduction in employment will be highest in market and unemployment will be highest in market
In 2020 in the United States, only about 10.8% of all workers belonged to a labor union. If union membership among workers increased to about 30% (roughly where it was in the 1950s in the US), what effect would we expect this to have? less bargaining power for workers O lower profit share of total income increased income inequality O increased racial and ethnic inequality
A. Name the unnamed curves in Diagram #1(competitive employer (buyer of labor) & competitive labor market) one firm's (MRP ARP, w, MFCuer Market for labor 1. Average Revenue Product of labor curve (where ARP- TR+ Qu) S170/persen 2. Marginal Income of labor to Union curve S 120/person S100person HMRP S70/person B. Using the diagram # 1: determine the following in the Market Diabor 30 120k
Figure demonstrates some of the trade-offs involved when deciding to join a union.a. Provide a graph that shows how the presence of union dues affects the decision to join a union. (Assume all workers pay a flat rate for dues.) Show on your graph how the presence of union dues may lead the worker to be less inclined to join the uni on.b. Suppose in addition to higher wages the union negotiates a 10 percent employer contribution to a defined contribution pension plan. Provide a graph that incorporates this retirement benefit into the decision of whether to join a union. Show on your graph how additional fringe benefits such as a retirement plan may cause the worker to be more inclined to join the union.
Compared with the share of workers in most other high-income countries, is the share of U.S. workers whose wages are determined by union bargaining higher or lower? Why or why not?

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