1. In a labor market in which LD = 600 - 4W, what is the elasticity value as wages change from $12 to $14 using the simple formula?
2. Given the change you calculated in question 1, what is the type of elasticity for this type of worker?
3. Given a change in wage of from $12 to $20, which of the following formulas will provide the most accurate measure of elasticity? Mid-point formula or simpleformula?
4. What is the percentage change in labor given a 5% change in wage and an elasticity value of -4?
5. Suppose a carpenter's wage rises from $10.00 to $11 per hour resulting in a decrease in the labor demanded for some other worker. Are these workers substitutes or complements?
6. Suppose production worker demands for modest wage increases result in significant decreases in production labor demanded as workers are replaced by technology. Which of the following is likely to be accurate for these workers in this scenario?
A. Inelastic / minimally substitutableB. Inelastic / highly substitutable C. Elastic / highly substitutable D. Elastic / minimally substitutable
7. If a type of worker with an own wage elasticity demand has an elasticity value of -0.75 and decrease in wage results in the decrease in labor demanded for another type of worker, would these workers likely be substitutes or complements?
8. Suppose a labor market for workers in which LD = 42 - 3W in which there is a 10% increase in wage from $10. Calculate the elasticity value for these workers and identify the type of elasticity. Be sure to show your calculations in detail.
9. Solve the problem provided in lastquestion using the mid-point formula. Be sure to show your calculations in detail
10. Suppose a competitive labor market for moderately skilled worker is defined the equations LS = -38 + 4W and LD = 95-3W (in which L = workers in 100's). Calculate the elasticity of these workers based on a change in labor supply from the initial relation to LS = -30+5W and state the type of elasticity. Be sure to use the equation that will give you the greatest degree of accuracy based on the observed change in wage
11. Briefly explain the difference between cross wage and own wage elasticity and give at least one numeric example of each. (ANSWER IN 2-3 SENTENCES)
12. Briefly explain why it is that labor unions may prefer to organize workers with an inelastic labor demand. Be sure to reference whether or not these appears to be some incongruity in this reasoning and if so, why (ANSWER IN 2-3 SENTENCES)
13. Briefly describe the expected changes in own wage elasticity as workers become progressively more skilled and why you might expect to see these changes. (ANSWER IN 2-3 SENTENCES)
14. Education is yet another of the inputs to human capital, as are health care and immigration. We understand generally that investments in education improve household, individual, and state level incomes, but there is some question as to whether or not the benefit of these additional investments are sufficient to justify the costs. How might we go about using education to improve the human capital stock - which is to ask, how might we increase productivity via education without simply throwing more money at it? (Answer should be>=200 words)