Experiment on Labor Market: Unemployment, Incomes, and Wages, Assignments of Economics

Download Experiment on Labor Market: Unemployment, Incomes, and Wages and more Assignments Economics in PDF only on Docsity! Experiment 5 Section 3 Problem 5.1 (Average wage is $9.50 ) Table 5.11: Experimentally Observed Unemployment Involuntarily Voluntarily Unemployed Unemployed Session 1 0 15 Session 2 23 0 Session 3 0 0 Problem 5.2 Table 5.12: Experimentally Observed Incomes Session 1 Session 2 Session 3 Total Wage Earnings $180.52 $167.00 $541.01 Total Income of Unemployed $180.00 $199.00 $0.00 Total Income of All Workers $360.52 $366.00 $541.01 Total Profits of Firms $119.48 $53.00 $303.99 Sum of Total Income of Workers and Profits of Firms $480.00 $419.00 $845.00 Problem 5.3 Part a) rose by $5.68 Part b) rose by $5.48 Part c) fell by $66.48 Part d) yes Part e) yes Part f) no Part g) yes Problem 5.4 Table 5.13 Labor Supply Table Wage Range Labor Supplied Wage < $5 0 $5<Wage<$12 17 Wage>$12 34 Problem 5.5 Part a) 0 laborers Part b) 1 laborer Part c) 2 laborers Problem 5.6 Table 5.14: Market Labor Demand Table--Session 1 Wage Range Amount Demanded Wage > $20 0 $10<Wage<$20 11 Wage<$10 22 Problem 5.7 Part a) 0 laborers Part b) 1 laborer Part c) 2 laborers Part d) 4 laborers Problem 5.8 Table 5.15: Market Labor Demand Table-Session 3 Wage Rate Amount Demanded Wage>$30 0 $25<Wage<$30 11 $20<Wage<$25 22 Wage<$20 44 Problem 5.9 Figure 5.7: Supply and Demand-Sessions 1 and 2 $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 $50 0 8 16 24 32 40 48 56 Number of Laborers W ag e R at e