In an Israeli factory, each worker can produce 2/5 of a shirt in an hour or 1/10 of a pair of pants in an hour. If there are 500 workers in the factory, what is opportunity cost of producing one pair of pants?
a. 1 shirt
b. 4 shirts
c. 1/2 shirt
d. 1/4 shirt
e. 2 shirts
B
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In some markets plumbers have a choice of joining unions or working as nonunion plumbers. The total short-run supply of plumbers is perfectly inelastic at 500 workers per day
The demands for nonunionized and unionized plumbers, respectively, are: WNU = 30 - 0.04L WU = 30 - 0.10L. The wage rate is W in $/hr. and the number of workers per day is L. a. Determine the total demand for plumbers. b. Calculate the total market wage rate of plumbers assuming that unionized and nonunionized plumbers get the same wage rate. c. If the unionized workers succeeded in getting their wage increased to $20.00 per hour, how many unionized workers would lose their jobs? d. If the unionized workers in (c) who lost their jobs take jobs as non-unionized workers, how much and in what direction would non-unionized wages change?
Using a graph, compare the labor-market equilibrium under perfect competition and monopsony. Explain.
What will be an ideal response?
Assuming that pollution cannot be removed from the environment at zero cost, the optimal level of pollution
A. will be zero. B. will be greater than zero. C. will be negative. D. cannot be determined.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, a decrease in unemployment may be represented by the movement from
A. B to A. B. C to D. C. B to D. D. A to C.