Economics of Enterprise Answers

Unions can affect the wage and employment of non-union sectors in various ways. Discuss the wages and employments for union sector and non-union sector with the following situations. a. Union wage rate is higher than an ordinary market equilibrium wage rate. And labours who fail to get a position in the union sector will move to non-union sector. b. Union wage rate is higher than an ordinary market equilibrium wage rate. And labours who fail to get a position in the union sector will stay on the union sector to find a job since union wage is higher than the rate of non-union sector. c. Union wage rate is higher than an ordinary market equilibrium wage rate. And labours who fail to get a position in the union sector will move to the non-union sector. The non-union sector has two groups. Group one is able to organize unions and threatens to organize unions if wages are not increased. Group Two is not able to organize unions.

Since Great Depression, Canada experienced double-digit unemployment rates several times. Explain the Canadian experiences of double-digit rate of unemployment. Why unemployment was so high for those periods?

Describe wage determination in a labor market in which workers are unorganized and many firms actively compete for the services of labor. Show this situation graphically, using W1 to indicate the equilibrium wage rate and Q1 to show the number of workers hired by the firms as a group. Show the labor supply curve of the individual firm and compare it with that of the total market. Why are there differences? In the diagram representing the firm, identify total revenue, total wage cost, and revenue available for the payment of non labour resources.

Assume a monopsonistic employer is paying a wage rate of Wm and hiring Qm workers. Now suppose an industrial union is formed that forces the employer to accept a wage rate of Wc. Explain verbally and graphically why in this instance the higher wage rate will be accompanied by an increase in the number of workers hired.

go to the company's web site(www.starbucks.com) and find the list of the seniors.Pick one of those position and descroobe what you think that job might involve

suppose that steak is a normal good.In each case below identify the effect on the demand curve for steak and draw a well labelled diagram to illustrate the effect.
1. An increase in the price of lamb

1. Assume that the equations of Demand and Supply of a specific good X in 2018 are as follows: Qd = 20,000 - 500P; Qs = -8,000 + 3000P
Assume that in the 2019 Budget proposal, the Government plans to introduce a tax on the producers of good X. The tax will be equal to one euro per unitof good X produced. Assuming that all other exogenous variables remain constant in 2018 and 2019:

a. Solve for the equilibrium price and quantity for good X in 2018.
b. Solve for the equilibrium price and quantity for good X in 2019.
c. Draw an adequate graph describing both equilibria.
d. What is the change in net revenues (from 2018 to 2019) for the producers of good X?
e. How is the tax burden divided between producers and consumers? Explain your results.

In a typical daily income-leisure choice model, wage rate is increased from $4 per hour to $8 per hour. Assume leisure is a normal good. b. If income and leisure are perfect 6-for-1 complements, analyze the substitution and income effects. c. If income and leisure are perfect 6-for-1 substitutions, analyze the substitution and income effects.

In a typical daily income-leisure choice model, wage rate is increased from $4 per hour to $8 per hour. Assume leisure is a normal good. a. With a conventional indifference curve, analyze the substitution and income effects. b. If income and leisure are perfect 6-for-1 complements, analyze the substitution and income effects. c. If income and leisure are perfect 6-for-1 substitutions, analyze the substitution and income effects.

Given that the demand and supply function of commodity X are Qd=20-1/6p while Qs=18+1/6p. Find the equilibrium price and quality for commodity X.