An employer has narrowed a list of applicants down to two individuals. The two candidates look nearly identical on paper, but one of them has earned a four-year college degree. The employer decides to offer employment to the college graduate. What does this example illustrate? (1 point)
the income effect
the screening effect
the substitution effect
the learning effect
A firm sells pairs of jeans. The market price for a pair of jeans is $30. With one worker the firm can make 9 pairs of jeans in an hour. With two workers the firm can make 19 pairs of jeans in an hour. What is the marginal revenue product of labor for the second worker? (1 point)
$570 per hour
$300 per hour
$270 per hour
$840 per hour
Question
Use the table to determine how many workers the firm will employ when the cost per good is $6, and the wage rate is $25.
Labor Input (Workers) Total Product Marginal Product of Labor
Marginal Revenue Product of Labor (per hour)
Marginal Cost of Labor (per hour)
0 0 - - -
1 7 7 $42 $25
2 16 9 $54 $25
3 24 8 $48 $25
4 28 4 $24 $25
5 30 2 $12 $25
(1 point)
two workers
five workers
four workers
three workers
A state agency has recently removed the certification and training requirements for hairdressers in the state. What is likely to happen in the labor market for hairdressers? (1 point)
The demand for hairdressers will fall.
The demand for hairdressers will rise.
The wages paid to hairdressers will rise.
The wages paid to hairdressers will fall.
If your goal is to earn the highest wage possible, which of the following industries has the most favorable characteristics? (1 point)
There are many firms producing very popular products, but the production process is so technical that properly trained employees are hard to come by.
A few firms produce a very specialized product, but capital is used instead of labor for much of the production. The firms primarily hire low-skilled workers, if any.
Many firms are producing very popular products, and the simple processes involved in production allow the firms to hire thousands of low-skilled workers.
A few firms produce a very specialized product. The firms rarely hire new employees, as they require so few.
A few firms produce a very specialized product. The firms rarely hire new employees, as they require so few.
1. screening effect
2. $300
3. 3 workers
4. the wages paid to hairdressers will fall.
5. there are many firms producing very popular products, but the production process is so technical that properly-trained employees are hard to come by
muah
is correct got 100% thaNKS. <33
Well, it seems like you have quite a number of questions there! Let's tackle them one by one, shall we?
Alright, for the first question about the employer choosing the college graduate over the other candidate, this example illustrates the screening effect. The employer is using the college degree as a screening tool to select the more qualified candidate.
Now, onto the second question about the marginal revenue product of labor for the second worker. Hmm, let's see... If the first worker can produce 9 pairs of jeans in an hour, and with the second worker they can produce 19 pairs, then the marginal product of the second worker is 10 pairs (19 - 9). If the market price for a pair of jeans is $30, then the marginal revenue product of the second worker would be $300 per hour (10 pairs x $30).
Next, we have the table for determining how many workers the firm will employ when the cost per good is $6 and the wage rate is $25. Looking at the table, it seems that when the firm produces 24 units (labor input of 3 workers), the marginal revenue product of labor equals the marginal cost of labor ($48 = $25), so the firm will employ three workers.
Moving on to the fourth question about the removal of certification and training requirements for hairdressers. Well, in this case, it is likely that the wages paid to hairdressers will fall. With the removal of certification and training requirements, the supply of hairdressers may increase, leading to a greater supply than demand situation, which tends to push down wages.
Lastly, we have the question about the most favorable industry for earning the highest wage possible. Based on the given characteristics, it seems like the industry with many firms producing very popular products, but with a technical production process, would be the most favorable. The scarcity of properly trained employees in this industry suggests that the demand for such skilled workers will be high, resulting in higher wages.
I hope I was able to bring a smile to your face with my answers! If you have any more questions, feel free to ask.
The first question is asking what the example of an employer choosing a college graduate over a non-college graduate illustrates. To answer this question, we need to understand the concepts that each answer choice represents.
1. The income effect: This refers to the change in the quantity or quality of labor supplied due to changes in real income. It is not relevant to the scenario described.
2. The screening effect: This refers to the idea that education serves as a signal to employers about an applicant's abilities, skills, and work ethic. It suggests that employers use education as a way to screen potential employees and differentiate between candidates. This concept is most relevant to the scenario described, as the employer is using the college degree as a screening mechanism.
3. The substitution effect: This refers to the idea that employers may substitute lower-skilled workers with higher-skilled workers if the wage difference is not significant. It is not relevant to the scenario described.
4. The learning effect: This refers to the idea that education and training can improve a worker's productivity and skills over time. It is not relevant to the scenario described.
Based on these explanations, the most appropriate answer to the first question is:
- The screening effect.
Moving on to the second question:
The marginal revenue product of labor (MRP) measures the additional revenue generated by employing an additional unit of labor. In this case, we are given the total number of pairs of jeans produced per hour with different numbers of workers.
With one worker, the firm produces 9 pairs of jeans per hour.
With two workers, the firm produces 19 pairs of jeans per hour.
To calculate the marginal revenue product of the second worker, we need to find the difference in total product (output) between having one worker and two workers. In this case, the difference is 19 - 9 = 10 pairs of jeans.
The market price for a pair of jeans is given as $30. Therefore, the marginal revenue product of labor for the second worker would be:
10 pairs of jeans * $30 per pair = $300.
Hence, the answer to the second question is:
- $300 per hour.
Moving on to the third question:
To determine the number of workers the firm will employ when the cost per good is $6 and the wage rate is $25, we need to compare the marginal product of labor with the marginal cost of labor.
Looking at the table provided, we can see that the marginal product of labor decreases as more workers are hired. The marginal cost of labor remains constant at $25 per hour.
When the cost per good is $6, the firm will employ the number of workers that maximizes the difference between the marginal product of labor and the marginal cost of labor. In this case, that would be the point where the marginal product of labor is equal to the marginal cost of labor, while still producing a positive output.
From the table, we can see that the marginal product of labor becomes equal to the marginal cost of labor when there are four workers. Therefore, the answer to the third question is:
- Four workers.
Moving on to the fourth question:
Removing the certification and training requirements for hairdressers is likely to have an impact on the labor market for hairdressers. To determine the likely outcome, we need to consider the effects of this change.
It is reasonable to assume that removing the certification and training requirements would lower the barrier to entry for individuals interested in becoming hairdressers. This could increase the supply of hairdressers as more people enter the market.
An increase in supply, ceteris paribus (assuming all other factors remain constant), would lead to downward pressure on wages. This is because there would be a larger pool of available hairdressers competing for the same number of job opportunities, which could result in lower wages.
Therefore, the answer to the fourth question is:
- The wages paid to hairdressers will fall.
Moving on to the fifth question:
To answer this question, we need to analyze the characteristics described in each option and determine which one is most favorable for earning the highest wage possible.
Option 1: There are many firms producing very popular products, but the production process is so technical that properly trained employees are hard to come by. This suggests that there is a high demand for skilled workers, and the supply is limited. It indicates that these skilled workers would likely command higher wages in this industry.
Option 2: A few firms produce a very specialized product, but capital is used instead of labor for much of the production. The firms primarily hire low-skilled workers, if any. This option suggests that the demand for low-skilled workers is limited, and the use of capital-intensive production methods reduces the need for labor. This is less likely to result in higher wages.
Option 3: Many firms are producing very popular products, and the simple processes involved in production allow the firms to hire thousands of low-skilled workers. This suggests a large supply of low-skilled workers and the potential for wage competition among them. This is less likely to result in higher wages.
Option 4: A few firms produce a very specialized product. The firms rarely hire new employees, as they require so few. This option suggests a limited demand for labor and minimal opportunities for new employees, which may limit wage growth.
Based on these analyses, the option with the most favorable characteristics for earning the highest wage possible is:
- Option 1: There are many firms producing very popular products, but the production process is so technical that properly trained employees are hard to come by.
I hope this helps clarify the answers to the questions. Let me know if you have any further questions!