According to Labor Economics by George J. Borjas on labor supply (Chapter 2, sections 5-11 (starting where you left off in the middle of page 35), In your answer, be sure to use a mathematical expression(s) from course materials and explain the economic concept (the phrase in bold) intuitively and/or graphically.

1. What is one reason there might be a big difference between yourreservation wageand the reservation wage of someone else you know?

Textbook link: https://b-ok.cc/book/2481320/120e6d

Question 2: This will help you locate the current statistics for the labor force definitions.

• Go to the Bureau of Labor Statistics Databases page athttp://www.bls.gov/data/.
• Scroll down to the Employment data section.
• Show in a graph of the recent history of one of the labor force statistics. Upload a screenshot.

Hint of discussion:

Labor Force-

Employed + Unemployed

Relies on self-reports:

Have job? If not, looking for one?

Labor Force Participation Rate-

Labor Force / Population

Population 16+, not in military or institutions

Employment-to-Population Ratio-

Employed / Population

Reflects size of disabled and retired groups

Unemployment Rate-

Unemployed / Labor Force

Omits those not looking for work from both numerator and denominator