(19) If the SUBSTITUTION effect dominates, a RISE in the wage will cause the wor
ID: 1129639 • Letter: #
Question
(19) If the SUBSTITUTION effect dominates, a RISE in the wage will cause the worker's labor supply to: (A) rise (B) decline (C) tend to stay the same (D) it depends on the individual. (20) A labor union will be able to RAISE the wage by restricting labor supply in an industry that is: (A) labor intensive (B) capital intensive (C) concentrated (D) all of these (21) The agency created by the WAGNER ACT is; (A) EEOC (B) AF ofL C) FDC (D) NLRB (22) If firm X gives John GENERAL on the job training, firm X will probably: (A) pay John more than his MPL at firm X during training B) pay John less than his MPL at firm X after the training is over (C) pay John more than he could earn elsewhere after training (D) none of these is true (23) If firm X gives John SPECIFIC on the job training, firm X will probably: (A) pay John less than his MPL at firm X during training (B) pay John less than his MPL at firm X after the training is over (C) pay John less than he could earn elsewhere after training (D) none of these is true (24) The wage gap between the average Black and White workers has gotten smaller in the U.S. because: (A) the average Black worker now has a higher level of education (B) periods of prosperity and growth in the economy (C) the Civil Rights Act of 1964 (D) all of these (25) John's nominal wage rises from $ 2.00 to $ 9.00. The percent change in his wage is: (A) 1.3% (B) .35% (C) 35% (D) 35090 (26) SOCIAL RETURNS to investment in education of children tend to be: (A) large and positive (B) small and positive (C) large and negative (D) small and negativeExplanation / Answer
Answer 19 - Substitution effect given rise to labor supply but income effect reduces labor supply. When substitution effect dominates supply of labor rises because worker will be encouraged to earn more. The worker will substitute leisure hours by working hours.
Option A is the correct answer.
Answer 20 - A labor union will be able to raise wage by restricting labor supply in the labor intensive industry. Labor Union knows that labor intensive industry use labor more than capital thus they will have more bargaining power. Unions can influence wage rate in these industry.
Option A is the correct answer.
Answer 21 - Wagner introduced a ''National labor relation Act into the senate in 1935. He proposed an idea to establish an agency. The main purpose of the agency was to establish legal right to the workers. This agency will work for worker's right and remove mediators. The agency was named ''National labor relation Board'' in short we can say, NLRB
Option D is the correct answer.
Answer 22 - The firm X will pay more to John general compare to what he could earned on job training. Firms pay less to the workers on training period but after training is completed they increases the pay.
Option C is the correct answer.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.