#3. (20 points) Chapter Eleven a. How is the pure union wage advantage defined? 1 b. If in a given labor market the wage

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3 20 Points Chapter Eleven A How Is The Pure Union Wage Advantage Defined 1 B If In A Given Labor Market The Wage 1 (56.75 KiB) Viewed 28 times

#3. (20 points) Chapter Eleven a. How is the pure union wage advantage defined? 1 b. If in a given labor market the wage rate would be $20 without a union and $25 with a union, then what is the pure wage advantage? e. Explain how, and in what direction, each of the following might cause the measured union advantage to vary from the pure wage advantage: (a) the spillover effect, (b) the threat effect, (c) the product market effect, and (d) the superior worker effect. d. Graph a sector with a union and a sector without a union to show how the spillover effect and threat effect impact the the sector without a union. (There should be a graph for each sector) # 4. (10 points) Chapter Twelve a. Assuming that income includes both private and public goods and that leisure is a normal good, explain how a major reduction in governmentally provided goods might increase a person's optimal number of hours of work. b. Demonstrate what you found in part a) with a labor-leisure diagram. Be sure to label the various levels of employment, income, and curves. #5. (20 points) Chapter Thirteen Show graphically how an increase in the minimum wage might affect employment in (be sure to label everything carefully): a. a competitive labor market b. a labor market characterized by monopsony e. In words, explain which type of labor market is impacted more by the minimum wage in terms of worker conditions (unemployment, wages, etc.) and firm conditions (profits, wage cost, etc.)? Would it depend on elasticity of demand or supply? Explain.