labor market

Chapter 14

(0.5 POINTS) SUPPOSE YOU SEE A GRAPH OF THE LABOR MARKET IN WHICH THE CALIFORNIA STATE MINIMUM WAGE OF $16.00 PER HOUR EXTENDS OUTWARD FROM THE Y-AXIS DIRECTLY THROUGH THE INTERSECTION OF THE LABOR DEMAND AND LABOR SUPPLY CURVES. WHAT IS THE EQUILIBRIUM WAGE IN THIS LABOR MARKET GRAPH?

(0.5 points) The U.S. labor market has historically discriminated against a variety of groups. List two examples of groups who have faced labor market discrimination in the United States.

1. (0.5 points) Suppose you have never worked a job before and you are applying to work at a large, established grocery store conglomerate that operates nationwide. Briefly explain why that grocery store conglomerate might have an advantage over you during bargaining (in other words, during the negotiations for whether you end up being hired/your wage/working hours).

(0.75 points) The table below shows levels of employment (Labor), the marginal product at each of those levels, and the price at which the firm can sell output in the perfectly competitive market where it operates.Labor, marginal product, and priceLaborMarginal Product of LaborPrice of the Product ($)Value of the Marginal Product of Labor ($)1135.502125.503105.50475.50545.50605.50

Fill in the final column of the table by calculating the value of the marginal product of labor.

1. If the firm operates in a perfectly competitive labor market where the going market wage is $38.50, what is the firm’s profit maximizing level of employment in terms of quantity of Labor?

(0.75 points) The table below shows levels of employment (Labor), the marginal product at each of those levels, and a monopoly’s marginal revenue.Labor, marginal product, and marginal revenueLaborMarginal Product of LaborMarginal Revenue ($)Marginal Revenue Product ($)1240.812200.753160.704120.67580.65640.64

1. Fill in the final column of the table by calculating the value of the marginal revenue product.

If the monopoly operates in a perfectly competitive labor market where the going market wage is $19.44, what is the firm’s profit maximizing level of employment in terms of quantity of Labor?

1. Chapter 15

(0.25 points) In country A, the population is 339 million and 99 million people are living below the poverty line. What is the poverty rate in percentage terms, rounded to the nearest two decimal places?

(0.25 points) In country B, the population is 154 million and 44 million people are living below the poverty line. What is the poverty rate in percentage terms, rounded to the nearest two decimal places?

(0.5 points) Imagine a particular state enacts a policy granting every state resident a $1,312 per year universal basic income. No matter the income an individual earns from working, this $1,312 per year level of government support will never reduce for people who live in that state. Now suppose Millie is considering her work and leisure choices for the year. Millie earns $11.73 per hour working and can work up to 1,500 hours during the year. With the information provided, fill in the table below for Millie (for a related example, see table 15.4 in our textbook). Work, earnings, and total incomeAmount worked (hours)Total earnings from work ($)Government support ($)Total income ($)001,3121,3123001,3126001,3129001,3121,2001,3121,5001,312 

(0.5 points) Suppose that the table below shows the share of aggregate income received by each fifth and the top 5 percent of U.S. households in 2021 and 2022. Income receivedYearLowest
QuintileSecond
QuintileThird
QuintileFourth
QuintileHighest
QuintileTop
5%20213.99.114.923.248.922.120221.26.914.122.755.126.0Based on the data in the table, did the U.S. income distribution become more or less unequal from 2021 to 2022? (Note: it may be helpful for you to plot the Lorenz Curve in order to visualize the answer—see section 15.4 in our textbook.)

Chapter 19

(1.75 points) In Ecuador, a worker can produce a bushel of corn in 4 hours or a bag of coffee in 1 hour. In Peru, a worker can produce a bushel of corn in 2 hours or a bag of coffee in 20 hours. Use that and the information that follows to complete parts A through E below. Production by countryCountryCorn (hours per bushel)Coffee (hours per bag)Ecuador41Peru220 

Which country has the absolute advantage in the production of corn?

Which country has the absolute advantage in the production of coffee?

Which country has the comparative advantage in the production of corn?

Which country has the comparative advantage in the production of coffee?