Explain in your own words the reason for wage rigidity?

Q: As the elasticity of demand for labor increases, the more likely a labor union will: place its…

A: Answer: If the elasticity of labor demand increases means a small change in wages now will lead to a…

Q: Explain how the reservation wage is determined in the one-sided search model

A: In microeconomics, search model concentrates on purchasers or merchants who can't right away observe…

Q: Give two reasons why a firm might want to pay workers above the competitive wage and how can this…

A: Efficiency wages refers to the employers paying more wages to the workers. This means that the wages…

Q: Suppose the supply curve of physicists is given by w =10 + 5E, while the demand curve is given by w…

A: The equilibrium in any market is when the demand and supply are equal. To calculate the equilibrium,…

Q: Using a supply and demand diagram, illustrate and explain briefly cost–push inflation caused by a…

A: As economies emerged, goods and services were produced that required machinery and labour. For…

Q: What does job rationing create? Job rationing creates a O A. surplus of labor O B. surplus of jobs O…

A: Job rationing occurs when the real wage rate is greater than the equilibrium wage rate.

Q: Show the likely effects on price- and/or wage-setting behaviour as reflected in the WS/PS diagram of…

A: Hi. since there are multiple questions we will solve the first three questions.    WS is wage…

Q: Suppose that Congress passes a law requiring employers to provide employees some benefit (such as…

A: This problem requires the shift in the demand and supply curve. There is a shift in the demand curve…

Q: Why a sizeable part of the female and male wage differential might be attributable to 'supply side'…

A: The gender pay gap, also known as the wage gap, is the average difference in pay between men and…

Q: Q47 In the Canadian labour market, demand for labour can be impacted by elasticity of the product…

A: The elasticity in indutry A is higher than indutry B and also indutry A elasticity is greater than 1…

Q: This question involves the labor market for bakers in New York. Suppose that the bakeries all sell…

A: MRPL or Marginal Revenue Product of Labor is given as the product of cost and marginal productivity…

Q: In the AD/AS model, the wage-adjustment process is asymmetrical because... O a. Employers delay wage…

A: Any adjustment that is being made by the employer on the pay of the employee is known as an…

Q: The curvature of the isoutility curve illustrates: A) the amount of safety that can be exchanged for…

A: Iso Utility curve shows equal quantity of two of input and output which is also called iso-product…

Q: Ceteris paribus, an increase in worker opportunities in other industries will cause the equilibrium…

A: Labor market refers to the market for supplying and demanding workers. The interactions between the…

Q: Assuming a perfectly competitive labor market, what should an increase in the minimum wage do to the…

A: The demand curve for labour, under the ceteris paribus assumption, shows the amount of labor…

Q: Analyze and explain the effect of the minimum wage law on the unemployment rate. Explain your answer…

A: Analyze and explain the effect of the minimum wage law on the unemployment rate. Answer: The minimum…

Q: Suppose the labour market is initially in equilibrium. Now consider that the government raises…

A: In this question the labour supply is that people want to provide to the firm and the labour demand…

Q: Leo runs a bicycle repair shop. He recently examined information on wage and employment levelsand…

A: The real wages are refers to the nominal wage rates which have been adjusted for inflation

Q: Explain in your own words the reason for wage rigidity?

A: Wage rigidity refers to the sticky wages that can't fall below a specific level. It creates…

Q: True or false: Equilibrium employment is given by the intersection of the wage and the profit curves

A: Wages represent the money paid to the labor for hiring their services whereas profit curves…

Q: Suppose that labour demand and labour supply are represented by the equations: Demand: LD = 10 -…

A: Given,  Demand : LD = 10-0.5WSupply : LS = 0.5W

Q: Explain how and why the method of instrumental variables allows us to estimate the labor demand…

A: The labor demand is the demand which the companies do in favour of the labor for their manufacturing…

Q: Emma is employed at a contract where he can vary his labour supply between 0 and 40 hours per week.…

A: Total time available = 40 hours/week Time Constraint :  h + L = 40 , where h = labor hours , L =…

Q: In 2019, the country of Cheeseling was suffering from a period of high unemployment. The new…

A: "In labor market there are two players employees who supply their labor and employers who demand…

Q: Explain in your own words the reason for wage rigidity in detail.

A: Macroeconomics analyzes the economy as a whole. It studies aggregate economic concepts such as…

Q: Why wages differ   my last chance to get right, please answer correctly For each of the scenarios…

A: A wage disparity is a difference in pay between people with similar skills working in different…

Q: Q1) A prolonged and deep recession is called a........ Q2) labor demand curve A graph that…

A: 1.A prolonged and deep recession is called a depression. When recession increases to a very large…

Q: If the company must pay a wage rate of BD40 per week, how many workers should it hire? Explain why.…

A: There's an error particularly with the schedule as with 5 labor the output is 155 then with 6 labor…

Q: The wage gap is usually defined as the real wage divided by labor productivity. O True O False

A: In an economy, productivity of labor explains the ability of the workers to generate output.

Q: Some Firms Struggle to Hire Despite High Unemployment Matching people with available jobs is always…

A: Even if the labor market is working properly, there tends to be unemployment. This is because…

Q: W/P Labor supply e) None of the above. MPL, Labor demand L The above graph is taken from chapter 2…

A: Both workers and businesses are participants in the labor market. For pay, workers provide labor to…

Q: Efficiency wage theory suggests that workers will be paid less than their reservation wage. OA. O B.…

A: The markets are the places where the buyers, and sellers interact with each other, and get involved…

Q: In the year 2010, the government decided to construct a thermal plant in a small town called Aboadze…

A: Initially, as a new thermal plant is constructed in a small town, the demand for labor will increase…

Q: Consider each of the following and explain why it is or is not a valid instrument for estimating the…

A: An instrument is valid to estimate the labor supply elasticity if it shifts labor demand but not…

Q: "GROWTH in retail sales slowed as expected during the covid 19 pandemic"  Illustrate and explain,…

A: Answer: It is given that the growth in retail sales slowed as expected during the covid 19 pandemic.…

Q: Assume that you are 18 years old and deciding whether to go to university or start working. If you…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: egal scrimination is illegal and, therefore, impossible. scrimination is legal, but few if any…

A: DISCLAIMER  “Since you have asked multiple question, we will solve the first question for you. If…

Q: How might relationships between so-called insiders and outsiders contribute to downward wage…

A: According to mainstream economists, one of the major reasons behind recessions is the rigidity of…

Q: ple, the sticky-wage theory asserts that output prices adjust more quickly to changes in the price…

A: NOTE: This question has numerous varieties. Kindly coordinate the above question with your inquiry…

Q: 68. Supply-side economic studies indicate that a. Marginal income tax rates of about 20% start to…

A: Disclaimer: Since multiple questions have been posted, the answer to the first question is provided…

Q: Suppose that a consulting firm has generated the following information about the economy of…

A: Given: Current employment in export industries = 50,000 The current total employment in the city =…

Q: Suppose that labour demand and labour supply are represented by the equations: Demand: LD = 10 -…

A: (c) Demand: LD = 10 - 0.5W Supply: LS = 0.5W ---------------- Labor union in this market has limited…

Q: In this section you have to indicate whether you think the statement is true or false and explain…

A: A change in anything else that affects  demand for labor like changes in output, productivity or…

Q: Explain in two ways how the equilibrium wage can be disturbed

A: Equilibrium  wage is the wage rate which equates the demand and supply of the labor. The…