SophiaPretty

(5)

$14/per page/Negotiable

About SophiaPretty

Levels Tought:
Elementary,Middle School,High School,College,University,PHD

Expertise:
Accounting,Algebra See all
Accounting,Algebra,Applied Sciences,Architecture and Design,Art & Design,Biology,Business & Finance,Calculus,Chemistry,Communications,Computer Science,Economics,Engineering,English,Environmental science,Essay writing Hide all
Teaching Since: Jul 2017
Last Sign in: 304 Weeks Ago, 5 Days Ago
Questions Answered: 15833
Tutorials Posted: 15827

Education

  • MBA,PHD, Juris Doctor
    Strayer,Devery,Harvard University
    Mar-1995 - Mar-2002

Experience

  • Manager Planning
    WalMart
    Mar-2001 - Feb-2009

Category > Business & Finance Posted 06 Sep 2017 My Price 7.00

Please help me solve these. I don't know how to get aggregate supply or what the equilibrium real wage is.

 

Practice Problems #4

Econ 1A                                                                                              Spring, 2016

San Jose State University                                                                   L. Martin

 

1.  Consider the following production function.

 

Labor               Output                         Marginal Product

 

1,000               300,000

2,000               500,000

3,000               650,000

4,000               750,000

5,000               800,000

6,000               825,000

7,000               835,000

 

a.  Find the marginal product of  labor and enter in the table.

 

b.  Suppose that labor supply equals 6,000.  What will be the equilibrium real wage?

 

                                                                                                _______________ 

 

c.  What will be the economy’s aggregate supply?

                                                                                                _______________ 

 

d.  Draw diagrams of the production function and labor market.

 

e.  Show the effects of a decrease in labor supply to 5,000.

 

f.  Show the effect of  a ten percent upward shift in the production function.

 

 

 


2.   Consider the following production function.

 

Labor               Output                         Marginal Product

0                      0

1,000               700,000

2,000               1,200,000

3,000               1,500,000

4,000               1,600,000

5,000               1,600,000

6,000               1,500,000

 

 

a.  Find the marginal product of  labor and enter in the table.

 

b.  Suppose that labor supply equals 3,000.  What will be the equilibrium real wage?

 

                                                                                                _______________ 

 

c.  What will be the economy’s potential GDP?

                                                                                                _______________ 

 

d.  Draw diagrams of the production function and labor market and label the appropriate curves.  Also, show the equilibrium values in this problem.

 

e.  Show the effects of  an increase in labor supply to 5,000.

 

f.  Show the effects of a twenty percent upward shift in the production function.

 

 


3.  Suppose that the labor force equals 100 million, the job finding rate is one-fourth and the job loss rate is .03.

 

a.       What is the equilibrium unemployment rate?

 

b.      How many people are unemployed in equilibrium?

 

c.       How many are employed?

 

4.  Suppose that the labor force of low-wage workers is 20 million and the demand is as given below.

 

Wage               Jobs

$20                  6 million

$18                  8

$16                  10

$14                  12

$12                  14

$10                  16

$8                    18

$7                    20

$6                    22

$5                    24

 

a.  What is the equilibrium wage level and number of jobs?  Draw a diagram.

 

b.  If a minimum wage of $6 is imposed what is the new wage and number of jobs?  Is there any unemployment?  How much?  Draw a diagram.

 

 

c.  If a minimum wage of $10 is imposed, what is the new wage and number of jobs?  Is there any unemployment?  How much?  Draw a diagram.

Attachments:

Answers

SophiaPretty
(5)
Status NEW Posted 06 Sep 2017 11:09 AM My Price 7.00

Hel-----------lo -----------Sir-----------/Ma-----------dam----------- T-----------han-----------k y-----------ou -----------for----------- yo-----------ur -----------int-----------ere-----------st -----------and----------- bu-----------yin-----------g m-----------y p-----------ost-----------ed -----------sol-----------uti-----------on.----------- Pl-----------eas-----------e p-----------ing----------- me----------- on----------- ch-----------at -----------I a-----------m o-----------nli-----------ne -----------or -----------inb-----------ox -----------me -----------a m-----------ess-----------age----------- I -----------wil-----------l b-----------e q-----------uic-----------kly-----------

Not Rated(0)