(a) Use an isoquant diagram to demonstrate and describe (i) the scale, and (ii) the substitution effects on quantity of labour demanded following a raise in wage.
(b) Illustrate out why a profit-maximizing firm might not lay-off employees when there is a cyclical or seasonal decline in product prices?
(c) Why are firms willing to finance 'specific' on-the-job training but unwilling to finance 'general' on-the-job training?
Illustrate out why wage structures diverge across markets and across public-private sector.
Suppose that the labour market is typified by monopsony power. Exemplify and describe how the government can maximize employment levels by imposing a minimum wage.
Illustrate out giving exs, any THREE (3) of the following views on human capital.
i) The Becker view
ii) The Gardener view
iii) The Schultz/Nelson-Phelps view
iv) The Bowles-Gintis view