14 Briefly give an example of an automatic stabilizer in the labor market and

14 briefly give an example of an automatic stabilizer

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14. Briefly give an example of an automatic stabilizer in the labor market and describe the nature of its stabilizing influence. Answers may include Unemployment Insurance Workman’s Compensation Disability Income Earned Income Tax Credit But should not include Military Enlistment Higher Education Early Retirement Household Endowments 15. Provide a brief explanation of the functional differences between steep and relatively flat labor supply curves. Answers should include
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Steep curves suggest a greater proportional required change in wage income based on the change in labor/leisure hours Relatively flat curves suggest a lesser proportional required change in wage income based on the change in labor/leisure hours 16. Given what you know about the placement of indifference curves on the labor/leisure tradeoff curve, how would you describe a worker choosing a $400 budget preference when wages are $35 per hour? Answers should include o This worker values income more than leisure time. o The required labor to meet this budget = 11.43, leaving 4.57 leisure hours Graphic for Question 9 Graphic for Question 10
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Graphic for Question 11 Graphic for Question 12
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  • Fall '19
  • Scott Schaefer

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