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When the wage rate paid to labour is below equilibrium wage, then labour is undersupplied. As firms require more labour to maximise their profit, they will slowly raise their wage rate (because revenue from labour > costs) until the equilibrium level is achieved (since no more profit is achieveable at this level).
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Paying an above-equilibrium wage rate might reduce unit labor costs by?
increasing the supply of labor
Show what Diagrams to illustrate and explain the impact on the equilibrium wage rate and quantity of labor supplied in the labor markert more workers enter the labor marker?
Show what Diagrams to illustrate and explain the impact on the equilibrium wage rate and quantity of labour supplied in the labour markert more workers enter the labour marker?
What is a simple definition of equilibrium wage?
In economics, the equilibrium wage is the wage rate that produces neither an access supply of workers nor an excess demand for workers and labor ...en.wikipedia.org/wiki/Equilibrium_wage
Advantages of a fixed rate of exchange?
A fixed exchange rate system is one where the value of the exchange rate is fixed to another currency. This means that the government have to intervene in the foreign exchange market to maintain the fixed rate. The equilibrium exchange rate may be either above or below the fixed rate. In Figure 1 below, the equilibrium is above the fixed rate. There is a shortage of the national currency at the fixed rate. This would normally force the equilibrium exchange rate upwards, but the rate is fixed and so cannot be allowed to move. To keep the exchange rate at the fixed rate the government will need to intervene. They will need to sell their own currency from their foreign exchange reserves and buy overseas currencies instead. This has the effect of shifting the supply curve to S2 and as a result, their foreign currency holdings will rise.
What role does the central bank play if the fixed rate is set below market equilibrium?
If the fixed rate is set below market equilibrium , the central bank plays an important roll as follows: 1) They will not return the money anyone invested 2) They can bully the government to give them money 3) They will stole another banks money for their need 4) They will encounter police
Paying an above-equilibrium wage rate might reduce unit labor costs by?
increasing the supply of labor
What is direct labor hour rate?
Direct labor hour rate is the per hour wage rate paid to skilled or unskilled labor to make one unit of product.
Show what Diagrams to illustrate and explain the impact on the equilibrium wage rate and quantity of labor supplied in the labor markert more workers enter the labor marker?
Show what Diagrams to illustrate and explain the impact on the equilibrium wage rate and quantity of labour supplied in the labour markert more workers enter the labour marker?
The variance which measures the deviation of the rate actually paid to labor as from the standard hourly rate is known as?
Labour rate variance .
What is a simple definition of equilibrium wage?
In economics, the equilibrium wage is the wage rate that produces neither an access supply of workers nor an excess demand for workers and labor ...en.wikipedia.org/wiki/Equilibrium_wage
What are the two kinds of equilibrium?
The two kinds of equilibrium are the folowing:Physical, which is an open system, and the rate of substances in, equals the rate of substances out.The other equilibrium is chemical equilibrium, which is a closed system, and the rate of the forward reaction equals the rate of the reverse reaction.
How do unions affect the natural rate of unemployment?
Unions may affect the natural rate of unemployment via the effect on insiders and outsiders. Because unions raise the wage above the equilibrium level, the quantity of labor demanded declines while the quantity supplied of labor rises, so there is unemployment.
What is it when the birth rate and the death rate are the same?
Equilibrium
When the dissolving rate equals the rate at which molecules comes out of solution the solution is in?
When the dissolving rate equals the rate at which molecules comes out of solution the solution is in 'equilibrium'.
Advantages of a fixed rate of exchange?
A fixed exchange rate system is one where the value of the exchange rate is fixed to another currency. This means that the government have to intervene in the foreign exchange market to maintain the fixed rate. The equilibrium exchange rate may be either above or below the fixed rate. In Figure 1 below, the equilibrium is above the fixed rate. There is a shortage of the national currency at the fixed rate. This would normally force the equilibrium exchange rate upwards, but the rate is fixed and so cannot be allowed to move. To keep the exchange rate at the fixed rate the government will need to intervene. They will need to sell their own currency from their foreign exchange reserves and buy overseas currencies instead. This has the effect of shifting the supply curve to S2 and as a result, their foreign currency holdings will rise.
What is meant by law of equilibrium?
Law of equilibrium - The principle that (at chemical equilibrium) in a reversible reaction the ratio of the rate of the forward reaction to the rate of the reverse reaction is a constant for that reaction.
Can a catalyst change rate of reaction equilibrium position or both?
A catalyst cannot change the equilibrium position. However, it can change its rate.
