Econ_Extra_Credit - Nick Zoccoli Suppose that Congress passes a law requiring employers to provide employees some benefits(such as healthcare that

Econ_Extra_Credit - Nick Zoccoli Suppose that Congress...

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Nick Zoccoli Suppose that Congress passes a law requiring employers to provide employees some benefits (such as healthcare) that raises the cost of an employee by $4 per hour. 1. What effect does this employer mandate have on the demand for labor? a. The mandate would decrease the demand for labor because the cost of having employees increased by $4 per hour. 2. If employees place a value on this benefit exactly equal to its cost, what effect does this employer mandate have on the supply of labor? a. The supply of labor would go up because more people would want to work because of the increased benefit of healthcare that would be provided. 3. If the wage can freely adjust to balance supply and demand, how does this law affect the wage and the level of employment? Are employers better or worse off? Are employees better or worse off? a. The wage would most likely decrease because $4 per hour per employee
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  • Fall '19
  • $3, $4, Nick Zoccoli

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