laborexam1s08

laborexam1s08 - Labor Exam 1 February 20, 2008 your By...

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Labor Exam 1 By writing your PID below, you are indicating February 20, 2008 your intention to abide by the honor pledge: PID: There are ten short - answer questions worth 4 points apiece. There are four long - answer questions worth 10 points apiece. The space provided should be sufficient to answer each question. Short answer questions ( 30 minutes total ) 1. Show how a minimum wage, set above the market equilibrium wage, affects employment in the labor market. 2. Suppose the country has 200 million people age 16 or older. Of these, 120 million are currently working; 30 million are looking for work; and 50 million are neither working nor looking for work. What is the unemployment rate? 3. What three variables determine the “no - shirk wage”, the lowest wage at which a worker is willing to supply effort?
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Labor Exam 1, page 2 of 7 4. How does having a high value of leisure affect the shape of a worker’s indifference curves? ( In other words, in what ways would the indifferences curves of high - value - of - leisure and low - value - of - leisure look different? ) 5. A firm produces widgets using capital and labor.
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laborexam1s08 - Labor Exam 1 February 20, 2008 your By...

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