Discuss what is meant by labor market rigidities and explain how they might cause the relatively high unemployment in Europe
What will be an ideal response?
Examples of labor market rigidities are: relatively high minimum wage, relatively high unemployment benefits, and relatively high level of worker protection. All three of these are hypothesized to cause a reduction in employment and, therefore, an increase in the unemployment rate.
Economics
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Economist George Borjas has estimated the net benefits (+)/costs (-) to the United States from labor immigration to be approximately:
a. +10% of GDP. b. -5% of GDP. c. +0.1% of GDP. d. 0.5% capital loses and 0.8% labor gains.
Economics
In the above table, the marginal product of the 7th worker is 6. What is the total product when 7 workers are employed?
A) 68 B) 70 C) 72 D) 76
Economics