An economy with competitive markets has 2 kinds of jobs, Routine & Skilled. There are 2 types of workers, Qualified & Unqualified. 60% of workers are Qualified while 40% are unqualified. In a Routine job, both types of workers produce 10 widgets. In a Skilled job, Qualified workers produce 100 widgets each, while Unqualified workers produce O. Labor markets are competitive, so each worker is paid their marginal product, i.e. how much they produce, in widgets. Everyone looks great in an interview, so companies must hire without knowing the worker's type and must pay the first period's wage without knowing their actual output. However, Qualified workers can signal their qualification by receiving an education. For a Qualified worker, the cost of getting educated to level n is 0.5n2. For an Unqualified worker, it is n². These costs are also measured in widgets. What is the maximum level of education that Qualified workers will obtain, in a separating equilibrium? 13.5 12 13 10

An economy with competitive markets has 2 kinds of jobs, Routine & Skilled. There are 2 types of workers, Qualified & Unqualified. 60% of workers are Qualified while 40% are unqualified. In a Routine job, both types of workers produce 10 widgets. In a Skilled job, Qualified workers produce 100 widgets each, while Unqualified workers produce O. Labor markets are competitive, so each worker is paid their marginal product, i.e. how much they produce, in widgets. Everyone looks great in an interview, so companies must hire without knowing the worker's type and must pay the first period's wage without knowing their actual output. However, Qualified workers can signal their qualification by receiving an education. For a Qualified worker, the cost of getting educated to level n is 0.5n2. For an Unqualified worker, it is n². These costs are also measured in widgets. What is the maximum level of education that Qualified workers will obtain, in a separating equilibrium? 13.5 12 13 10

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter14: Labor Markets And Income

Section: Chapter Questions

Problem 1SCQ: Table 14.10 shows levels of employment (Labor), the marginal product at each of those levels, and...

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Table 14.10 shows levels of employment (Labor), the marginal product at each of those levels, and the price at which the film can sell output in the perfectly competitive market where it operates. What is the value of the marginal product at each level of labor? If the firm operates in a perfectly competitive labor market where the going market wage is 12, what is the films profit maximizing level of employment?
What is die price commonly called in the labor market?
A job is a contract between a O A. bank; household; capital OB. manufacturer; retailer; entrepreneurial OC. firm; household; labor OD. bank; firm; capital 2 and a 1₁ for providing services.
You are given the following different technologies for producing 100 metres of cloth. 10 8 C 1 1 2 5 6 7 8 9 10 4 Number of workers Select one or more: O a. Technology C dominates technology A. O b. Technology D is more labour-intensive than technology C. O c. Technology A is the cost-minimising technology at all prices of coal and wages. O d. Technology C can sometimes be a cheaper technology than A. Tonnes of coal 43
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An increase in the average wage also causes the labor demand curve to shift to the O A. left because the use of machines decreases, causing the average wage to increase. B. right because the use of machines increases, causing labor to become more productive. C. left because the use of machines decreases, causing the marginal cost of labor to increase. O D. left because the use of machines decreases, causing labor to become less productive. O E. right because the use of machines decreases, causing the marginal product of labor to increase.
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QUESTION 6 When the marginal revenue product of labor (MRPL) is greater than the wage (W) then: O A. The firm should hire less labor to pay minimum O B. The firm should use more capital to increase the labor productivit OC The firm should demand more labors in order to get maximum profit O D. The firm should use less capital and more labors to wage pay minimum cost
Job search is defined as O A. equivalent to job rationing. O B. attending school to increase your employability. OC. saying you are looking for a job when you are actually not looking. O D. the activity of looking for an acceptable, vacant job. O E. being paid an efficiency wage.
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The table to the right gives the employment share of four industries within the three regions of a country. Which, if any, of these industries would you classify as tradable? OA. Industry B. OB. Industries A and B. OC. Industries C and D. O D. Industry C. O E. Industry D. East Central West A 7% 8% 7% B 23% 22% 24% Industry C 1% 17% 2% D 4% 5% 21%