Author Question: Refer to Figure 17-5 to answer the following questions. a. What is the equilibrium quantity of ... (Read 45 times)

tuffie · **on:** Jun 29, 2018

Refer to Figure 17-5 to answer the following questions.

a. What is the equilibrium quantity of firefighters hired, and what is the equilibrium wage?
b. What is the equilibrium quantity of paralegals hired, and what is the equilibrium wage?
c. Explain why firefighters might earn a higher weekly wage than paralegals.
d. Suppose that comparable worth legislation is passed, and the government requires that firefighters and paralegals be paid the same wage, 800 per week. Now how many firefighters will be hired and how many paralegals will be hired?

Question 2

Refer to Figure 26-6. In the figure above, if the economy is at point A, the appropriate monetary policy by the Federal Reserve would be to

A) raise interest rates. B) raise income taxes.
C) lower income taxes. D) lower interest rates.

connor417 · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

a. 8,000 firefighters at a wage of 1,000 per week.
b. 11,000 paralegals at a wage of 600 per week.
c. The marginal revenue product of the two types of work may differ. There may also be a compensating differential because the work of firefighters is more dangerous than the work of paralegals.
d. 6,000 firefighters and 9,000 paralegals.

Answer to Question 2

D