Refer to Figure 17-5 to answer the following questions
a. What is the equilibrium quantity of firefighters hired, and what is the equilibrium wage?
b. What is the equilibrium quantity of paralegals hired, and what is the equilibrium wage?
c. Explain why firefighters might earn a higher weekly wage than paralegals.
d. Suppose that comparable worth legislation is passed, and the government requires that firefighters and paralegals be paid the same wage, $800 per week. Now how many firefighters will be hired and how many paralegals will be hired?
a. 8,000 firefighters at a wage of $1,000 per week.
b. 11,000 paralegals at a wage of $600 per week.
c. The marginal revenue product of the two types of work may differ. There may also be a compensating differential because the work of firefighters is more dangerous than the work of paralegals.
d. 6,000 firefighters and 9,000 paralegals.
You might also like to view...
Refer to Figure 9-1. Under autarky, the consumer surplus is
A) $195. B) $260. C) $300. D) $555.
The reduction in transactions costs per dollar of investment as the size of transactions increases is
A) discounting. B) economies of scale. C) economies of trade. D) diversification.
Using the ZZ/Y and NX graphs, illustrate graphically and explain what effect a reduction in taxes will have on output, exports, imports, and net exports. Clearly label all curves and clearly label the initial and final equilibria
What will be an ideal response?
Is it true that in the long run, a monopolistically competitive firm has market power but earns no profit? Explain
What will be an ideal response?