Question 1

Your friend Sue tells you that if she gets a raise,she is going to start working less.Your other friend Emma says that the plan is crazy and that Sue should work more so she can earn more money.Which friend is right?

Accepted Answer

The answer of Your friend Sue tells you that if...

Question 2

Outsourcing from a strictly "lower cost of labor" viewpoint may not be successful.Explain how this result could occur.

Accepted Answer

The answer of Outsourcing from a strictly "lower cost of...

Question 3

Graph the labor supply curves based on the statements below.
a.I hate working! I am never going to work!
b.I want to earn as much money as I possibly can so I can buy everything on my wish list.Every time I get a raise it makes me want to work more because I can earn even more money.I don't think I would ever work less,not even if the wage were a million dollars.
c.Money is necessary,but it's not the most important thing to me.If I received increased wages,I would probably work more for a while,but once my pay was high enough,I would work less.

Accepted Answer

The answer of Graph the labor supply curves based on...

Question 4

Graph the impact of the following events in the market for typists.Your graph should include shifting the appropriate curve and indicate the change to equilibrium wage W₁ and quantity of labor L₁. a.The introduction of new ergonomic keyboards increases the rate at which typists can complete their tasks. b.The main supplies typists use-computers,desks,and chairs-are all increasing in cost for their bosses. c.The conditions in a similar profession,such as office manager,are superior in terms of pay and benefits.

Accepted Answer

The answer of Graph the impact of the following events...

Question 5

Graph the following labor supply curves:
a.The substitution effect dominates the income effect until the wage reaches $200,after which the income effect dominates.
b.The income and substitution effects do not affect the worker's decision.She wants to work only 40 hours every week.

Accepted Answer

The answer of Graph the following labor supply curves:
a.The substitution...

Question 6

The labor market for doctors can be represented with the following two equations: L_S =5 + 3W L_D =30 - 2W Graph this labor market,highlighting equilibrium wages W* and quantity of labor L*.Label the wages where a shortage and a surplus would exist if the wage deviates from W*.

Accepted Answer

The answer of The labor market for doctors can be...

Question 7

Joe has several different offers for his land,which is located in the city center.He currently rents the land to a community-supported agriculture (CSA)farm for $5,000 per month.The city is offering a yearly rent payment of $12,000,to be paid in monthly installments,to put in a city park.Calculate the economic rent Joe is earning and use it to decide whether he should rent his land to the city.

Accepted Answer

The answer of Joe has several different offers for his...

Question 8

Two events are occurring simultaneously in the labor market for laborers who produce sports apparel.First,the government's campaign to increase the activity rate among its citizens is proving successful,and more people are going to the gym on a regular basis.Second,the sports apparel industry is known for its relatively high pay and good benefits,which are attractive to workers. a.Graph the effect of each shift separately.Label the original equilibrium wage and quantity W₁ and L₁,respectively. b.What needs to be true about the relative size of these shifts if workers in this labor market are to earn higher wages?

Accepted Answer

The answer of Two events are occurring simultaneously in the...

Question 9

Outsourcing has been a controversial topic ever since labor and manufacturing have been able to be transported.From a free-market perspective,what makes the issue so controversial?

Accepted Answer

The answer of Outsourcing has been a controversial topic ever...

Question 10

Mary recently opened her own styling salon.After the first month of operation,she looks at the mix of inputs she is using to see whether she should make any changes.The value of marginal product of her stylists is $125,000,and their wage is $20.Her equipment and salon space produces a value of $250,000,and it costs $400 to rent it.The land,which she rents at $800,produces a value of $300,000.Should she change her input mix or is she maximizing profit with her current arrangement?

Accepted Answer

The answer of Mary recently opened her own styling salon.After...

Question 11

Consider the labor market for domestic market personal trainers.Graph and explain how the following events would affect the labor supply curve for these workers.
a.Many personal trainers are qualified to coach various athletic teams.The pay for these coaching positions is far superior to what they can earn as personal trainers.
b.Most personal trainers used to be men.Now,more women are hired as personal trainers.
c.A neighboring country is looking to build its Olympic program to make the national team more competitive.As such,the government is providing very lucrative offers to personal trainers who move to that country to train potential Olympic athletes.

Accepted Answer

The answer of Consider the labor market for domestic market...

Question 12

Labor supply in the purchasing profession can be represented by the equation L_S = 10 + W,whereas labor demand can be depicted as L_D =40 - 4W. a.What is the equilibrium number of workers hired and their wage in this profession? b.Workers see that the number of good positions in other professions is shrinking,so they shift into the purchasing profession,causing labor supply to be two times what it used to be.What is the equilibrium number of workers hired now? What wage do they earn? c.When will workers stop changing professions? Or will this process continue indefinitely?

Accepted Answer

The answer of Labor supply in the purchasing profession can...

Question 13

The Earth's major governments have recently decided to combine their resources to launch an effective plan to colonize the moon.
a.Graph the market for land on the moon before the colonization effort is successful.
b.What impact will the moon base have on the rental price of land on Earth? Graph and explain.

Accepted Answer

The answer of The Earth's major governments have recently decided...

Question 14

Doctors must complete four years of undergraduate education and four years of medical school,and work three to eight years in a hospital before they can fully practice on their own.In contrast,a worker at a fast-food restaurant need not complete high school.
a.How does the difference in education and training affect the relative labor supply in these professions?
b.Using a supply and demand graph and your answer to part a,show why doctors earn higher wages than fast-food workers do.

Accepted Answer

The answer of Doctors must complete four years of undergraduate...

Quiz 14: The Demand and Supply of Resources

Your friend Sue tells you that if she gets a raise,she is going to start working less.Your other friend Emma says that the plan is crazy and that Sue should work more so she can earn more money.Which friend is right?

Outsourcing from a strictly "lower cost of labor" viewpoint may not be successful.Explain how this result could occur.

Graph the following labor supply curves: a.The substitution effect dominates the income effect until the wage reaches $200,after which the income effect dominates. b.The income and substitution effects do not affect the worker's decision.She wants to work only 40 hours every week.

The labor market for doctors can be represented with the following two equations: L_S =5 + 3W L_D =30 - 2W Graph this labor market,highlighting equilibrium wages W* and quantity of labor L.Label the wages where a shortage and a surplus would exist if the wage deviates from W.

Outsourcing has been a controversial topic ever since labor and manufacturing have been able to be transported.From a free-market perspective,what makes the issue so controversial?

Quiz 14: The Demand and Supply of Resources

Your friend Sue tells you that if she gets a raise,she is going to start working less.Your other friend Emma says that the plan is crazy and that Sue should work more so she can earn more money.Which friend is right?

Outsourcing from a strictly "lower cost of labor" viewpoint may not be successful.Explain how this result could occur.

Graph the following labor supply curves: a.The substitution effect dominates the income effect until the wage reaches $200,after which the income effect dominates. b.The income and substitution effects do not affect the worker's decision.She wants to work only 40 hours every week.

The labor market for doctors can be represented with the following two equations: LS =5 + 3W LD =30 - 2W Graph this labor market,highlighting equilibrium wages W* and quantity of labor L*.Label the wages where a shortage and a surplus would exist if the wage deviates from W*.

Outsourcing has been a controversial topic ever since labor and manufacturing have been able to be transported.From a free-market perspective,what makes the issue so controversial?

The labor market for doctors can be represented with the following two equations: L_S =5 + 3W L_D =30 - 2W Graph this labor market,highlighting equilibrium wages W* and quantity of labor L.Label the wages where a shortage and a surplus would exist if the wage deviates from W.