Principles of Microeconomics
Your completed Homework assignment should be at least three to four pages in length. Answer the following from the Problems Appendix in the back of your textbook on pp. 361-362, and upload your answers through Blackboard:
Chapter 12: Questions 1-11
All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations. All references and citations used must be in APA style.
Information about accessing the Blackboard Grading Rubric for this assignment is provided below.
- The following table shows the hours per week supplied to a particular market by three individuals and various wage rates. Calculate the total hours per week (QT) supplied to the market.
- Suppose that the cost of living increases, thereby reducing the purchasing power of your income. If your money wage doesn’t increase, you may work more hours because of this cost-of-living increase. Is this response predominately an income effect or a substitution effect? Explain
- Suppose that two jobs are exactly the same except that one is performed in an air-conditioned workplace. How could you measure the value workers attach to such a job amenity?
- Why might permanent wage differences occur between different markets for labor or within the same labor market?
- Both industrial unions and craft unions attempt to raise their member’s wages, but each goes about it differently. Explain the difference in approaches and describe the impact these differences have on excess quantity of labor supplied.
- What other objectives besides higher wages do unions pursue?
- What strategies do unions employ to achieve their wage objectives?
- What trends have worked against the union movement during the last half century? What has happened to the effectiveness of strikes and why?
- Review the logic underlying the exhibit below. Then determine the effect, on the industry and a typical firm, of an increase in the demand for industry output. Show your conclusions on a graph. Does the magnitude of the increase in demand make a difference?
- Why might firms in industries with high fixed cost be inclined to prevent strikes or end strikes quickly?
- Why are unions more effective at raising wages in oligopolistic industries than in competitive industries?