Consider the Labor Market for Autoworkers

question 92

Essay

Consider the labor market for autoworkers.Graph and explain how the following events would affect the labor demand curve for these workers:
a.Citizens become more concerned about the environment,choosing public transportation over motor vehicles.
b.Domestic pressures and governmental policy make it harder for firms to outsource their production to other countries.As business expands,firms must hire domestically.
c.Assembly line technology improves to the point where only a handful of workers are needed to operate the production system.

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Definitions:

Fair Value

An estimate of the price at which an asset or liability could be exchanged between knowledgeable, willing parties in an arm's length transaction.

Inventories

Items possessed for the purpose of being sold during regular business operations, currently being produced for that sale, or as raw materials and supplies intended for use in manufacturing or service provision.

Remaining Useful Life

The estimated period during which an asset is expected to be economically usable by one or more entities, with consideration for its anticipated obsolescence.