(Solved): Write three actors of the labor market. Explain each in 2 sentences.Draw a labor supply curve with y ...

1. Write three actors of the labor market. Explain each in 2 sentences.
2. Draw a labor supply curve with your own example. Explain why is the labor supply curve upward sloping?
3. What is the motivation of the firms in labor economics theory? Do you agree with the following statement, why or why not? ‘The firm’s demand for labor is a derived demand, a demand derived from the desires of consumers’.
4. Imagine the labor market is in equilibrium. Then, the demand for labor increases in this market. What happens to the equilibrium wage and employment? Answer in words and by using a graph.
5. How can you define the Labor Force? Why doesn’t it tell us about the intensity of work?
6. Define unemployment. How do we measure it? Can a person who does’nt work be counted as unemployed ‘in any case’?
7. Why are some people ‘out of the labor force’?
8. Explain the utility function U = f(C, L) that we use under neo-classical model of labor-leisure choice.
9. Explain the budget constraint a worker faces: ‘C = wh + V’ and draw the graph of it.

In this graph X axis shows the hours of leisure and work, Y-axis shows consumption in dollars.

1. Explain how does an individual maximize utulity according to this graph?
2. Why is point A inefficient? Is point Y attainable for this person, why or why not?