Graphically show the impact on real wage or the real price of
capital of each of the following situations in the marginal product
model:
a. Improved healthcare policies boost worker
productivity
b. Factories go unused (just sit empty) during a
recession
What does the aggregate demand curve show? What
factors change and what factors remain the same when there is a
movement along the aggregate demand curve
Use the hedonic wage model to show graphically why a male-female
wage differential might emerge, independent of skill differences or
gender discrimination.
Show graphically how an increase in the minimum wage might
affect unemployment in (i) a perfectly competetive market and (ii)
a labor market characterized by monopsony.
1) Show the classical view of minimum wage graphically and
explain what is being shown (in detail with an example)
2) Show the "so-called" exploitation (i.e new monopsonistic)
view of minimum wage graphically and explain what is being shown
(in detail with an example).
Graphically show and explain how reservation wage related to the
decision to work? Use your understanding of reservation wage to
explain how it relates to labor force participation for women.