In the face of recent events, the U.S. military is grappling with a shortage of enlisted manpower
Question:
In the face of recent events, the U.S. military is grappling with a shortage of enlisted manpower (men and women). It is currently considering the following options to meet its recruitment requirements:
a) raise the wage until the number of recruits voluntarily supplied just equals quantity demanded;
b) keep the existing wage and draft the remaining recruits (i.e., demand that they serve at the going wage);
c) follow policy
(b) but allow those drafted to pay someone to take their place.
Evaluate these three strategies using supply and demand analysis. For each proposal, address
(a) who pays the wages for the recruits;
(b) total wages paid to recruits; and
(c) how effectively U.S. labor is deployed.
Step by Step Answer:
Principles Of Microeconomics: The Way We Live First
ISBN: 9781000639810
1st Edition
Authors: Feigenbaum S.K., Hafer R.W.