Which of the items below would likely cause wage levels to be above labor market equilibrium...

Which of the items below would likely cause wage levels to be above labor market equilibrium levels? Instructions: You may select more than one answer. Click the box with a check mark for correct answers and click to empty the box for the wrong answers. An increased demand for agricultural exports causes GDP to increase. unanswered Workers for a large national retailer become unionized. unanswered A large employer in the region significantly increases its wage rates to reduce the turnover of its workers. unanswered A large city decides to raise the municipal minimum wage to $10 per hour although employers are currently paying $10.50 per hour for unskilled labor. unanswered A hurricane causes major damage along the Gulf Coast and there is a shortage of construction workers to repair the damage.

Expert Solution

Which of the items below would likely cause wage levels to be above labor market equilibrium levels?

Answers : An increased demand for agricultural exports causes GDP to increase. ( This will raise equilibrium wage level )

Workers for a large national retailer become unionized. ( CORRECT ) ( Unionization causes market equilibrium distrotion )

A large employer in the region significantly increases its wage rates to reduce the turnover of its workers. (CORRECT) (This causes wage imbalance)

A large city decides to raise the municipal minimum wage to $10 per hour although employers are currently paying $10.50 per hour for unskilled labor. ( The wage rate remains at equilibrium )

A hurricane causes major damage along the Gulf Coast and there is a shortage of construction workers to repair the damage.( This increases equilibrium wage due to labor shortage )

Rahul Sunny answered 2 years ago

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