1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Lady bird [3.3K]
3 years ago
10

A. Explain the role labor’s productivity plays in wage determination in the competitive labor market. If productivity increases,

what happens to wages and why?
b. What is meant by the term "compensating wage differentials?"
c. Why is the demand for labor called a "derived demand."
Business
1 answer:
Dima020 [189]3 years ago
6 0

Answer:

(A)Wages decrease in the long term

Explanation:

(A) The principles of supply and demand applies here.

Higher worker productivity in a particular industry implies increased demand for workers in the industry (short term effect).

Increased supply of workers implies:

1. output per worker increases, resulting in increase in supply of products in the industry. But, the laws of supply and demand comes in, because when supply increases, prices decrease.

That is, the increase in worker productivity may cause a decrease in prices resulting in a decrease in wages since the firm's revenue declined (long term effect).

2. Increase in the supply of workers in the industry with increased in productivity over workers from other industry because of initial increase in wages. This would lead to a decrease in wages because the supply of workers would exceed demand.

(B) The compensation differential is the additional amount of money that a given worker must be offered in order to motivate him to accept a given undesirable job, relative to other jobs that the worker could perform.

(C) This is called a derived demand because it is often based on the demand for products.

For example, when consumers want more of a particular good or service eg clothing, more firms in the industry will want workers that make this product.

You might be interested in
Suppose there is a large increase in the money supply in an economy that previously had low inflation. As a consequence, aggrega
hoa [83]

Answer:

It illustrates that the classical model of the price level best applies to economies with persistently high inflation.

Explanation:

When a very low inflation rate has been constant in an economy, and the money supply increases suddenly, in the short run that change will not immediately increase the inflation rate, but instead it will increase real output.

Classical economists argue that an increase in the money supply will immediately affect the inflation rate, but that theory applies mostly to economies that have a certain level of inflation. For example, for the past 12 years, European nations have been experiencing very low inflation rates, sometimes even negative rates. But during that same period, the European Central Bank has carried on a huge expansionary policy. It favored economic growth, although not as much as expected, but it didn't skyrocket inflation rate as the classical economy model predicted.

3 0
3 years ago
A loss is when:
skad [1K]

Answer:

a if revenue is greater the loss in money will deplinish

6 0
3 years ago
Read 2 more answers
You have just applied for a 30year 100000 mortgage at a rate of 10%.what must be annual payment be?​
Fittoniya [83]

Answer:

The correct answer is "$10,607.92".

Explanation:

Given:

Amount borrowed,

P = 100000

Interest rate,

r = 10%

or,

 = 0.1

Time,

= 30 years

Now,

The annual payment will be:

⇒ A=P\times \frac{r(1+r)^n}{(1+r)^n-1}

       =100000\times \frac{0.1(1+0.1)^{30}}{(1+0.1)^{30}-1}

       =10,607.92 ($)

7 0
3 years ago
For each market listed below, determine whether it is best characterized as a Cournot oligopoly, Stackelberg oligopoly, or Bertr
Semenov [28]

Answer: A. Cournot Oligopoly B. Stackelberg Oligopoly C. Bertrand Oligopoly

Explanation:

Cournot Model: In Cournot model, firms produce output independently and then set their prices. In this type of model, the products are typically standardized.

Stackelberg Model: In Stackelberg model, there is one firm who is quite dominant and that firm sets the price. Whereas, other firms or the competing lower firms usually follow the price leader.

Bertrand Model: In this model, firms have interaction with buyers in order to set prices and quantities.

3 0
3 years ago
How does fractional reserve banking grow the economy?
Aleks [24]

Answer:

C. By allowing the same money to be both stored as a deposit and  loaned to businesses is the correct answer.

Explanation:

6 0
3 years ago
Other questions:
  • The company’s CEO repeatedly says that "employees are our most important resource," but many managers treat employees disrespect
    12·1 answer
  • Marigold Corp. sells radios for $50 per unit. The fixed costs are $545000 and the variable costs are 60% of the selling price. A
    6·1 answer
  • On a timeline, a goal that will be achieved in __________ years will be to the right of one that will be achieved in __________
    10·2 answers
  • Exercise 20-6 Manufacturing: Direct materials budget LO P1 Rida, Inc., a manufacturer in a seasonal industry, is preparing its d
    5·1 answer
  • The degree of agreement among several measurements of the same quantity is called ________________. It reflects the reproducibil
    6·1 answer
  • Traveler's checks have no reserve requirements and are included in M1. When people travel during the summer and convert some of
    10·1 answer
  • 70 Marketing Dynamics .. .. : : . . : Part 4: Be Your Own Leader Leaders on a Top Secret Mission On December 6, 2011, a woman wa
    14·1 answer
  • What is the yearly salary and hourly wage for a novel author? it's for a project. ​
    14·1 answer
  • Limits on the quantity or total value of specific products imported to a nation are:_____.
    5·1 answer
  • Assume that both the demand curve and the supply curve for DVD players shift to the left but the demand curve shifts more than t
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!