Question

1. Do you think the market for labor is perfectly competitive? Explain why or why not. (4 points
2. Is it possible to get rid of all unemployment? Explain why or why not. (3 points)

Answer 1

a. The labors do not have all the similar kinds of skills and worth so the perfect competition according to their work is varied.

In some organizations, the experienced labor had with different wages compared to the newly recruited person. In firms, they offered high wages to experienced persons.

In some scenario, the firms hired the group of labors on a contract basis due to meet the work deadlines as quickly as possible so they offered the wages for all the labor the same. Here we may see a perfect competition.

The labors have all belong to the one category with respective demand of work in the market remains as perfectly competitive.

There are so many factors required to meet the perfect competition like skills, worth, experience, talent etc.

b. Yes, it’s possible to get rid of all unemployment.

If the government has taken certain measures to control the population then the problem will be sorted out.

The government needs to bring awareness among the public by advertising and use social media to educate all the persons about the problems of population and give slogan either one or none. So all the citizens of the nation to implement birth control so this is one of the ways to control the population and reduce unemployment.

The main and major issue for unemployment is increasing the population. The government is failed to create employment opportunities similarly for all over the population.

The government needs to give unemployment fund for respective persons if the government failed to give employment opportunities. This is a good step for reducing unemployment so the government will work honestly to create more number of opportunities.