Labor Market Economics



Labor Market Economics

Introduction

One must analyze that in today's modern world, a person can make way for the purpose and objective of making strong understanding and comprehensions of the kind of elasticity that exist as a relationship between the wage rate provided and the labor supply given by the both genders. This paper shall focus upon how can numerical values denote the occurring changes between the efforts input and put forth

Defining Elasticity

For a brief note of comprehension, elasticity implies the responsiveness to change of one economic variable factor upon all others. In the case of labor market, elasticity has been discussed in the context of demand and supply, that is, any changes in the wage packages of laborers as a whole, which results in the variable efforts of supply put into it.

Quantitative Analysis

For understanding, we have taken up a number, 5%, which embodies a significant increase in the labor supply that individuals could actually use to their advantage for producing corn and pigs upon their farm. This way it will add more to their gathering and ultimately create more room for them and earn a living.

Analysis through Scenario

When summing up the main points, it is hard for the government to decide whether they should install these price controls, as many people argue with the pros and cons of the situation. Furthermore, results that have been put forth as more positive towards introducing a maximum price control at first, and if more drastic measures must be taken, they will consider monetary policies.

Whether decision lies in the world of business, society or goes through a general decision making process; there is some price to pay. Therefore, it can be interpreted that the opportunity cost is an inevitable concept. However, an organization or a person can have a successful trade-off by proper analysis of the alternatives.

Mary's Opportunity Cost for producing corn

The concept of opportunity cost states to the scenario when a person has two alternatives to choose from. The concept of opportunity cost incurs when the person's selection of a particular decision is followed by the denial to other alternate available. In case of Mary when she decides to grow corn she would have to let go the alternative of raising pigs. Hence, Mary's opportunity cost for producing corn will be 50pigs/year.

Mary's Opportunity Cost of raising pigs

Mary's opportunity cost for raising pigs would be 200 pounds of corn; because, if ...