New Jersey Board of Examiners of Electrical Contractors

Supply and Demand
Student’s Name
Institutional Affiliation
Question 1
The labor market, just like all markets, wages and rents are determined by the forces of demand and supply. In the world of professional sports, the principle of demand and supply determines how many sports personalities are hired at a given time and the remuneration they receive from the club that hires them (Boaz, 2009). However, at any given time, some professional athletes earn higher remuneration than their colleagues because they are extremely talented and their skills are highly valuable to the club. Such athletes tend to be the most sought-after by club managers which means their demand is high among the sports clubs and their professional profile is very outstanding (Boaz, 2009). To make them feel adequately compensated for their great contribution to the victory of the club or team and to prevent them from moving to other better-paying clubs, team managers have to pay such athletes generously. The managers are always ready to sacrifice colossal club resources to hire and retain such athletes hoping that their talent will earn the team great victory and raise the rating of the club.
A baseball club manager, under certain circumstances, may have no other option but to hire an expensive player whose average remuneration per year is as high as $4 million. It would make sense for the team to do so if they want to hire a young highly talented player to bring fresh blood and energy into the team and reclaim its lost glory. The team may also have to hire a highly paid player to plug a vacant position in the team but the bid price in the transfer market is high due to the high demand of that particular player among the teams.
Question 2
New Jersey Electrician Exams are administered by the New Jersey Board of Examiners of Electrical Contractors to those aspiring to become electricians in the State. The candidates are issued with licenses after passing the examinations and fulfilling other requirements by the board (Filion, 2009). Assuming that the state government of New Jersey imposes a tougher exam for aspiring electricians would mean that fewer electricians would meet all the requirements to pass the examination. This would imply that there would be fewer electricians available in the market sparking an increase in demand and higher wage rates for electricians working in the state (Filion, 2009). With such tough laws, some of the electricians may resort to unscrupulous methods of passing the examination and get licenses that are not legitimate through collusion with the authorities. This may lead to an increase in illegal practitioners in the profession charging lower fees than the qualified practitioners leading to more cases of deaths and injuries resulting from electrical installations and repairs (Filion, 2009). This is likely to happen since most residents of New Jersey would be tempted to hire the quacks who would do the job for a lower fee compared to the legally licensed practitioners who charge a higher fee for the same service. Such a ...