Draw a labour market diagram that represents the supply and demand of labour and explain why one of the curves is upward sloping and one downward sloping. On this graph, represent a labour shortage and explain the relationship between a labour shortage and the level of wage paid by firms. What employment policy would you recommend to reduce the labour shortage?

Draw a labour market diagram that represents the supply and demand of labour and explain why one of the curves is upward sloping and one downward sloping. On this graph, represent a labour shortage and explain the relationship between a labour shortage and the level of wage paid by firms. What employment policy would you recommend to reduce the labour shortage?

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter20: Unemployment

Section20.3: Minimum-wage Laws

Problem 3QQ

See similar textbooks

Similar questions

what are the factors that will lead to an increase in demand for workers in an economy?
How does the firm adjust its employment if it is costly to hire and fire workers?
how does the demand and supply for labour affect the wage rate of workers?
Give three reasons a worker’s wage might be above the level that balances supply and demand.
When economists say that the demand for labor is a derived demand, they mean that it is... A. dependent on government expenditures for public goods and services B. related to the demand for the product or service labor is producing C. based on the desire of businesses to exploit labor by paying below equilibrium wage rates D. based on the assumption that workers are trying to maximize their money incomes.
Think of a job that either you or a friend/relative held that paid a wage that you thought was either unfair or inequitable compared to the wages or salaries of other positions within the business or within the wider business community. Answer the following questions in relation to that example. On what basis do you think the wage was set? I.e. What factors influenced how much the organization valued the role? Why did you think it was unfair? If there was an opportunity to be covered by a Union contract/agreement, do you think there would have been an increase/decrease in the wage? If you were the employer, what would cause you to increase the wage for that role? and finally, 5. Do you think that the wages/salaries of the main "jobs" in our society are allocated fairly? Provide an example of a role that you think is highly undervalued and explain why. For example, should CEOs and celebrities earn millions of dollars each year compared to child care workers or stay at home parents who…
Discuss labor supply and demand. Besides training and education, what are some of the things that have a significant impact on the supply and demand of labor? Explain why you believe they have such an impact. What other factors can directly influence the labor market?
Assume that the economy is in a recession and demand for labor is falling. Assume that wages are sticky. Draw a supply and demand graph that represents the labor market. Draw a graph that depicts what has happened to our demand and supply curves in the labor market, including our new equilibrium price and quantity of labor. Will the market experience an increase or a decrease in unemployment?
How do wages affect labor supply?
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?
The demand for labor relates how much labor firms will hire at each wage. Explain why the demand for labor slopes downwards show how an increase in TFP will affect the demand for labor and explain why.
Explain the meaning and significance of the fact that the demand for labor is a derived demand. Why do labor demand curves slope downward?