Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Figure 19-3 The manufacturing labor market. Refer to Figure 19-3 . Suppose the m

ID: 1229234 • Letter: F

Question

Figure 19-3
The manufacturing labor market.



Refer to Figure 19-3. Suppose the manufacturinglabor market, which is non-unionized, is in equilibrium at a wageequal to $30. Suppose now that the AFL-CIO (a labor organization)organizes the workers in the manufacturing market and negotiates awage of $38 per hour. Because of the union,

10 people who were once employed are now unemployed.

20 people who were once employed are now unemployed.

40 people who were once employed are now unemployed.

20 people who were once unemployed are now employed.

The "superstar" phenomenon can apply to which of these jobs?

high-school teacher

anchorperson for a national news program

heart surgeon

All of the above are correct.

Both Jake and Bill are police officers. Jake is a patrolman, andBill is a detective. Jake’s job is inherently more dangerousthan Bill’s. Bill has passed a difficult exam in order to bepromoted to detective. Bill earns more than Jake. This is likelybecause

of a compensating differential.

of efficiency wages.

of education as a signal.

Bill has more human capital.

Suppose that a college student receives an offer for a summerinternship with a stock brokerage firm. Unfortunately for thestudent, the internship is unpaid. Is it ever economicallybeneficial to accept an unpaid job?

Yes, because the experience gained during the internship wouldincrease the student's human capital.

No, because the opportunity cost is too high.

No, because the student is signaling to future employers that heor she is willing to accept low wages.

Yes, because accepting an unpaid job signals to future employersthat the student has stable personal finances.

Figure 19-3
The manufacturing labor market.



Refer to Figure 19-3. Suppose the manufacturinglabor market, which is non-unionized, is in equilibrium at a wageequal to $30. Suppose now that the AFL-CIO (a labor organization)organizes the workers in the manufacturing market and negotiates awage of $38 per hour. Because of the union,

10 people who were once employed are now unemployed.

20 people who were once employed are now unemployed.

40 people who were once employed are now unemployed.

20 people who were once unemployed are now employed.

2)

The "superstar" phenomenon can apply to which of these jobs?

high-school teacher

anchorperson for a national news program

heart surgeon

All of the above are correct.

3)

Both Jake and Bill are police officers. Jake is a patrolman, andBill is a detective. Jake’s job is inherently more dangerousthan Bill’s. Bill has passed a difficult exam in order to bepromoted to detective. Bill earns more than Jake. This is likelybecause

of a compensating differential.

of efficiency wages.

of education as a signal.

Bill has more human capital.

4)

Suppose that a college student receives an offer for a summerinternship with a stock brokerage firm. Unfortunately for thestudent, the internship is unpaid. Is it ever economicallybeneficial to accept an unpaid job?

Yes, because the experience gained during the internship wouldincrease the student's human capital.

No, because the opportunity cost is too high.

No, because the student is signaling to future employers that heor she is willing to accept low wages.

Yes, because accepting an unpaid job signals to future employersthat the student has stable personal finances.

Explanation / Answer

Bill has more human capital.

Yes, because the experience gained during the internship wouldincrease the student's human capital.


Bill has more human capital.

Hire Me For All Your Tutoring Needs
Integrity-first tutoring: clear explanations, guidance, and feedback.
Drop an Email at
drjack9650@gmail.com
Chat Now And Get Quote