This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Using a graph of the classical labor market, illustrate the effects of a real wage existing in the ... (Read 92 times)

futuristic

  • Hero Member
  • *****
  • Posts: 638
on: Jun 30, 2018
Using a graph of the classical labor market, illustrate the effects of a real wage existing in the market that is lower than the equilibrium real wage. What will eventually happen in this labor market if it is perfectly competitive?
 
  What will be an ideal response?

Question 2

What kinds of economic activities are excluded from GDP? If GDP misses these things, then why do we use it?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

poopface

  • Sr. Member
  • ****
  • Posts: 339
Reply #1 on: Jun 30, 2018
Answer to Question 1

If the real wage is lower than the equilibrium real wage then the quality of labor demanded is greater than the quantity of labor supplied. In the auction for labor, the real wage being paid to labor will eventually be bid up, increasing quantity supplied and reducing quantity demanded until the market is in equilibrium.

Answer to Question 2

GDP ignores underground activities, household production, externalities such as pollution, and income distribution. Economists still use it because it is highly correlated with all other measures of the quality of life, and as such serves as a useful summary statistic.


futuristic

  • Member
  • Posts: 638
Reply 2 on: Jun 30, 2018
Excellent

Jossy

  • Member
  • Posts: 336
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

An identified risk factor for osteoporosis is the intake of excessive amounts of vitamin A. Dietary intake of approximately double the recommended daily amount of vitamin A, by women, has been shown to reduce bone mineral density and increase the chances for hip fractures compared with women who consumed the recommended daily amount (or less) of vitamin A.

Did you know?

Fewer than 10% of babies are born on their exact due dates, 50% are born within 1 week of the due date, and 90% are born within 2 weeks of the date.

Did you know?

Your chance of developing a kidney stone is 1 in 10. In recent years, approximately 3.7 million people in the United States were diagnosed with a kidney disease.

Did you know?

Before a vaccine is licensed in the USA, the Food and Drug Administration (FDA) reviews it for safety and effectiveness. The CDC then reviews all studies again, as well as the American Academy of Pediatrics and the American Academy of Family Physicians. Every lot of vaccine is tested before administration to the public, and the FDA regularly inspects vaccine manufacturers' facilities.

Did you know?

Medication errors are more common among seriously ill patients than with those with minor conditions.

Effects of growth rate on development. Effects of growth rate on development.
Graph of 3 compounds tested Graph of 3 compounds tested
Dental Related Adverse Effects in Patients Undergoing Cancer Treatment Dental Related Adverse Effects in Patients Undergoing Cancer Treatment
Who is the “real” Beyoncé—doting mother or Sasha Fierce? Who is the “real” Beyoncé—doting mother or Sasha Fierce?
Use Fleury’s algorithm to determine Euler Circuit in the following graph. Exhibit exactly one ... Use Fleury’s algorithm to determine Euler Circuit in the following graph. Exhibit exactly one ...
Cast of a Fossil Dunkleosteus, with a human to illustrate scale Cast of a Fossil Dunkleosteus, with a human to illustrate scale
Video: Stomach peristalsis & Enterogastric reflex

For a complete list of videos, visit our video library