Consider an economy with two labor markets-one for manufacturing workers and one for service workers. Suppose initially that neither is unionized.

If manufacturing workers formed a union, what would you expect to happen to the wages and employment in manufacturing?

Consider an economy with two sectors: manufacturing and services. Demand for labor in manufacturing and services are described by these equations:

$$\begin{aligned} L_{m} &=200-6 W_{m} \\ L_{s} &=100-4 W_{s} \end{aligned}$$

where L is labor (in number of workers), W is the wage (in dollars), and the subscripts denote the sectors. The economy has 100 workers who are willing and able to work in either sector.

If workers are free to move between sectors, what relationship will there be between $W_{m}$ and $W_{s}$?

Consider an economy with two labor markets, neither of which is unionized. Now suppose a union is established in one market.

a. Show the effect of the union on the market in which it is formed. In what sense is the quantity of labor employed in this market an inefficient quantity?

b. Show the effect of the union on the nonunionized market. What happens to the equilibrium wage in this market?

Consider an economy with two sectors: manufacturing and services. Demand for labor in manufacturing and services are described by these equations:

$$\begin{aligned} L_{m} &=200-6 W_{m} \\ L_{s} &=100-4 W_{s} \end{aligned}$$

where L is labor (in number of workers), W is the wage (in dollars), and the subscripts denote the sectors. The economy has 100 workers who are willing and able to work in either sector.

Suppose a union establishes itself in manufacturing and pushes the manufacturing wage to $25. Calculate employment in manufacturing.

Consider an economy with two sectors: manufacturing and services. Demand for labor in manufacturing and services are described by these equations:

$$\begin{aligned} L_{m} &=200-6 W_{m} \\ L_{s} &=100-4 W_{s} \end{aligned}$$

where L is labor (in number of workers), W is the wage (in dollars), and the subscripts denote the sectors. The economy has 100 workers who are willing and able to work in either sector.

Suppose that the condition in part (a) holds, and wages adjust to equilibrate labor supply and labor demand. Calculate the wage and employment in each sector.

Using a diagram of the labor market, show the effect of an increase in the minimum wage on the wage paid to workers, the number of workers supplied, the number of workers demanded, and the amount of unemployment.

Structural unemployment is sometimes said to result from a mismatch between the job skills that employers want and the job skills that workers have. To explore this idea, consider an economy with two industries: auto manufacturing and aircraft manufacturing.

If for some reason wages fail to adjust to the new equilibrium levels, what would occur?

Economists use labor-market data to evaluate how well an economy is using its most valuable resource-its people. Two closely watched statistics are the unemployment rate and the employmentpopulation ratio (calculated as the percentage of the adult population that is employed). Explain what happens to statistic in the following scenario. In your opinion, which statistic is the more meaningful gauge of how well the economy is doing?

After an unsuccessful search, some of the laid-off workers quit looking for new jobs.

Structural unemployment is sometimes said to result from a mismatch between the job skills that employers want and the job skills that workers have. To explore this idea, consider an economy with two industries: auto manufacturing and aircraft manufacturing.

Suppose that workers in one industry cannot be quickly retrained for the other. How would these shifts in demand affect equilibrium wages both in the short run and in the long run?

Make a chart that gives details about women, in the late 1800s, who worked as: Farm Women; Domestic Workers; Factory Workers; and White Collar Workers. What assumptions can be made about them?

The supply of low-skilled workers in China is perfectly elastic. In 2011, when China cut the tax on these workers’ incomes from 5 percent to zero, ______.

A. employers cut the wage rate but hired the same number of workers

B. employers cut the wage rate and hired more workers

C. employers didn’t change the wage rate but hired more workers

D. employers didn’t change the wage rate and hired the same number of workers

The French Bread Company bakes baguettes for distribution to upscale grocery stores. The company has two direct-cost categories: direct materials and direct manufacturing labor. Variable manufacturing overhead is allocated to products on the basis of standard direct manufacturing labor-hours. Following is some budget data for the French Bread Company:

The French Bread Company provides the following additional data for the year ended December 31, 2014:

1. What is the denominator level used for allocating variable manufacturing overhead? (That is, for how many direct manufacturing labor-hours is French Bread budgeting?)

2. Prepare a variance analysis of variable manufacturing overhead. Use Exhibit 8-4 (page 304) for reference.

3. Discuss the variances you have calculated and give possible explanations for them.

Which of the following is not one of the categories of manufacturing inventory?

a) Raw materials

b) Finished products

c) Component parts

d) Just-in-time

e) Supplies

Use a chart to list details about working women in the late 1800s. What generalizations can you make about women workers at this time?