Eco 2023: Micro Homework #14 Paige      Job A pays $30,000 a year

Eco 2023: Micro

Homework #14

Paige

1.  Job A pays $30,000 a year.  Job B is completely identical in all aspects except it is located in an area that has a 10% higher cost of living.  In order to compete, Job B would need to pay ___________.  This is known as a _________________.

2. Explain the difference between the human capital and signaling theories of education.

3. Identify whether each of the following raises labor demand or lowers labor supply (includes slowing labor supply growth) in labor market X.                                                     

Increase the minimum wage for workers less skilled than labor market X.

Pass laws prohibiting children from working in labor market X.

Require a license to work in labor market X.

Increase tariffs on imports that compete with labor market X employers.

Limits on immigration for those who might work in labor market X.

Buy American campaign run by workers in labor market X.

4. What is the most common way modern labor unions use to raise wages?  This will result in the fewest jobs lost if labor demand is elastic or inelastic?  This will result in the most number of new worker entries if labor supply is elastic or inelastic?

5. Briefly describe each of the 4 main pieces of labor legislation.                                             

6. Find one website describing a state government attempt to limit public sector unions.  Provide a link and a summary.