Refer to the information provided in Figure 28.4 below to answer ...

[nmorano1]

Question 1

Which of the following arguments is 
not offered to explain the existence of "sticky" wages?

◦ the social contract explanation
◦ the relative-wage explanation
◦ the fact that labor contracts don't exist
◦ the explicit contract explanation

Question 2

Refer to the information provided in Figure 28.4 below to answer the question(s) that follow.








Refer to Figure 28.4. Suppose there is a decrease in the fertility rate and this causes some men and women to place a lower value on their time spent in nonmarket activities. This will cause

◦ the labor supply curve to shift to the left of 
S.
◦ the labor supply curve to shift to the right of 
S.
◦ the labor demand curve to shift from 
D to 
D'.
◦ the labor demand curve to shift from 
D' to 
D.

[Tabitha_2016]

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[newbem]

Question 1

Refer to the information provided in Figure 28.4 below to answer the question(s) that follow.








Refer to Figure 28.4. If the demand for labor falls from 
D to 
D' and wages are sticky on the downward side, there will be unemployment of ________ million.

◦ 200
◦ 150
◦ 100
◦ 50

Question 2

Refer to the information provided in Figure 28.4 below to answer the question(s) that follow.








Refer to Figure 28.4. The demand for labor falls from 
D to 
D'. If firms enter into social, or implicit, contracts with workers not to cut wages, then the wage rate will remain at $10 and

◦ employment will fall to 150 million.
◦ employment will fall to 200 million.
◦ employment will remain at 300 million.
◦ labor supply will decrease to restore the market to equilibrium.

[lcapri7]

Answer 1

150

Answer 2

employment will fall to 150 million.

[newbem]

Thank you!

[lcapri7]

Always glad to help...

[jon_i]

Refer to the information provided in Figure 28.4 below to answer the question(s) that follow.








Refer to Figure 28.4. Suppose there is an increase in the fertility rate and this causes some men and women to place a higher value on their time spent in non-market activities. This will cause

◦ the labor supply curve to shift to the left of 
S.
◦ the labor supply curve to shift to the right of 
S.
◦ the labor demand curve to shift from 
D to 
D'.
◦ the labor demand curve to shift from 
D' to 
D.

[al]

the labor supply curve to shift to the left of 
S.

[xclash]

Question 1

Refer to the information provided in Figure 28.4 below to answer the question(s) that follow.








Refer to Figure 28.4. If the demand for labor ________ and wages are sticky on the downward side, there will be unemployment of 150 million.

◦ falls from 
D to 
D'
◦ rises from 
D' to 
D
◦ remains at 
D'
◦ falls from 
D

Question 2

Refer to the information provided in Figure 28.4 below to answer the question(s) that follow.








Refer to Figure 28.4. The demand for labor rises from 
D' to 
D. If firms had entered into explicit contracts with workers that set wages for 3 years, then the wage rate will ________ and employment will ________.

◦ remain at $8; rise to 400 million
◦ remain at $10; fall to 200 million
◦ rise to $10; remain at 200 million
◦ rise to $10; rise to 300 million

[jackie]

Answer 1

falls from 
D to 
D'

Answer 2

remain at $8; rise to 400 million