Question
In: Economics
Is the BOLD and/or UNDERLINE CORRECT: Cho currently earns a nominal wage of $12.00 per hour;...
Is the BOLD and/or UNDERLINE CORRECT:
Cho currently earns a nominal wage of $12.00 per hour; in other words, the amount of her paycheck each week is $12.00 per hour times the number of hours she works. Suppose the price of orange juice is $2.40 per gallon; in this case, Cho's real wage, in terms of the amount of orange juice she can buy with her paycheck, is 5 gallons of orange juice per hour.
When workers and firms negotiate compensation packages, they have expectations about the price level (and changes in the price level) and agree on a nominal wage with those expectations in mind. If the price level turns out to be lower than expected, a worker's real wage is lower than both the worker and employer expected when they agreed to the wage.
Cho and her employer both expected inflation to be 4% between 2012 and 2013, so they agreed, in a two-year contract, that she would earn $12.00 per hour in 2012 and $12.48 per hour in 2013. However, suppose inflation between 2012 and 2013 actually turned out to be 2%, not 4%. For example, suppose the price of orange juice rose from $2.40 per gallon to $2.45 per gallon. This means that between 2012 and 2013, Cho's nominal wage (increase/decrease) by, ____% and her real wage (increase/decrease) by approximately _____% .
Solutions
Rahul Sunny answered 1 year agoRelated Solutions
Megan currently earns a (real, nominal) wage of $12.00 per hour; in other words, the amount...
Megan currently earns a (real, nominal) wage of
$12.00 per hour; in other words, the amount of her paycheck each
week is $12.00 per hour times the number of hours she works.
Suppose the price of milk is $3.00 per gallon; in this case,
Megan's (nominal, real) wage, in terms of the
amount of milk she can buy with her paycheck, is
[#] gallons of milk per hour.
When workers and firms negotiate compensation packages, they
have expectations about the...
The federal minimum wage in the United States is currently $7.50 per hour. Joe Biden, the...
The federal minimum wage in the United States is currently $7.50
per hour. Joe Biden, the Democratic candidate for President,
proposes to increase it to $15. Based on your knowledge of the
elasticity of labour demand for low-wage workers, how would you
expect Biden’s plan to affect:
a. Employment of low-wage workers. Be precise.
b. Earnings of low wage workers. Be precise.
c. Prices of goods produced with low-wage labour. Explain and
illustrate.
d. Summarize the effects of this tax...
Assume the gross wage of w=$10 per hour and gross non-wage income YN = $5000 per...
Assume the gross wage of w=$10 per hour and gross non-wage
income YN = $5000 per year. Assume a maximum of 6,000 hours of
leisure per year (T= 6000 per year ), so that full income for the
worker is $65,000.
Draw the budget constraint under each of the following taxes and
transfer schemes.
1. A progressive tax on earnings where the tax rate is 20% on
earnings up to $50,000 and 30% on earnings above $50,000.
Suppose that a consumer earns wage income of $450 per week, and 52 weeks per year...
Suppose that a consumer earns wage income of $450 per week, and
52 weeks per year
a. Construct a yearly income-leisure constraint.
b. If the consumer chooses 20 weeks for work, graphically
explain this choice of work and leisure
behavior.
c. The government considers to offer an income supplement
program of $200 per week, or the
maximum of $10400 per year for this consumer. If the government
wants to avoid detracting
from this consumer’s current motivation to work, what policy...
Suppose that the equilibrium wage in the labor market is $8.00 per hour of labor. If...
Suppose that the equilibrium wage in the labor market is $8.00
per hour of labor. If a law increased the minimum wage from $7.25
to $10.00 per hour of labor, then
A. both consumer surplus and producer surplus increase since the
new price is higher.
B. the resulting increase in producer surplus would be larger than
any possible loss of consumer surplus.
C. the resulting increase in producer surplus would be smaller than
any possible loss of consumer surplus.
D....
Factory workers at a company are paid a wage of $15 per hour. In addition, the...
Factory workers at a company are paid
a wage of $15 per hour. In addition, the company pays benefits
(vacation leave, sick leave, health insurance, etc.) equal to 75%
of a worker’s base wage for a 40-hour week. Workers are paid 1.5
times the hourly rate for any overtime hours worked in excess of 40
hours during a week, but no additional benefits are paid for
overtime work.
a) How much wages will a worker
receive for working 40, 42,...
Factory workers at a company are paid a wage of $15 per hour. In addition, the...
Factory workers at a company are paid
a wage of $15 per hour. In addition, the company pays benefits
(vacation leave, sick leave, health insurance, etc.) equal to 75%
of a worker’s base wage for a 40-hour week. Workers are paid 1.5
times the hourly rate for any overtime hours worked in excess of 40
hours during a week, but no additional benefits are paid for
overtime work.
a) How much wages will a worker
receive for working 40, 42,...
Factory workers at a company are paid a wage of $15 per hour. In addition, the...
Factory workers at a company are paid
a wage of $15 per hour. In addition, the company pays benefits
(vacation leave, sick leave, health insurance, etc.) equal to 75%
of a worker’s base wage for a 40-hour week. Workers are paid 1.5
times the hourly rate for any overtime hours worked in excess of 40
hours during a week, but no additional benefits are paid for
overtime work.
a) How much wages will a worker
receive for working 40, 42,...
An employee earns exist25 per hour and 2 times that rate for all hours in excess...
An employee earns exist25 per hour and 2 times that rate for all hours in excess of 40 hours per week. Assume that the employee worked 48 hours during the week. Assume further that the social security tax rate was 6.0%, the Medicare tax rate was 1.5%, and federal income tax to be withheld was exist 239.15.
a. Determine the gross pay for the week.
b Determine the net pay for the week.
An employee earns $16 per hour and 1.5 times that rate for all hours in excess...
An employee earns $16 per hour and 1.5 times that rate for all
hours in excess of 40 hours per week. Assume that the employee
worked 55 hours during the week. Assume that the social security
tax rate was 6.0%, the Medicare tax rate was 1.5%, and federal
income tax to be withheld was $230.00.
a. Determine the gross pay for the week.
$
If applicable, round your final answer to two decimal
places.
b. Determine the net pay for...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Due to a recession, expected inflation this year is only 4.75%. However, the inflation rate in...
- What are the benefits of doing a pilot program before a full scale rollout of a...
- It is a calm summer day in southeast Iowa at the Ottumwa air traffic control radar...
- 1. Write a detailed article on Evolution of attacks on the internet & web [your article...
- Analyze the role of the contingency plan coordinator (CPC) in the scope of preparing a BIA....
- Amazing Manufacturing, Inc., has been considering the purchase of a new manufacturing facility for $500,000. The...
- LANGUAGE: JAVA Create a New Project called YourLastNameDomainName. Write a DomainName class that encapsulates the concept...
ADVERTISEMENT