Question

Lesson 3.3 DB - Wages and Supply and Demand	Please answer both questions to receive full credit for this assignment.  Use your Unit 3 Notes Guide to help you craft your answers.  Be sure to remember to use economic evidence from the lesson to support your opinion. 1. How do we decide how much each person in society should be paid? Why do some jobs receive high wages while others do not? Do wages reflect what types of jobs our society values? 2. View the supply and demand graph below. Analyze how jobs are affected by supply and demand. In the last five months, we've senn a lot in the news about supply, demand and unemployment.   Using what you know about supply and demand and labor, explain how changes in supply and demand couple impact employment and jobs.	35	35

Answer 1

1. How much each person in society should be paid is decided by demand and supply of different types of labor in the labor market. Some jobs receive high wages while others do not because the demand for those who receive higher wages such as skilled professionals, doctors, and engineers is much higher than their supply, likewise total demand for those who get paid less is lower than their total supply.

Yes, unfortunately wages do reflect what types of jobs our society values. For example, a highly educated professional such as an engineer's job is valued more by the society due to his higher income or wages, than a construction worker with normal skilles and knowledge.

2. As demand for goods and services increases, demand for labor also increases as economic activities in the country increase.Whereas a fall in demand for goods and services leads to lower or a fall in demand for labor which leads to an increase in unemployment.