Question 1

According to a recent prediction in The Wall Street Journal the adult population of Russia will decline dramatically over the next few decades.If this prediction is correct,the supply of labor in Russia will

Accepted Answer

If the adult population of Russia declines, it implies that there will be fewer people available to work. This decrease in population will lead to a decrease in the supply of labor in Russia. Therefore, the correct answer is (C) decrease.

Question 2

If a union restricts the supply of labor,it ________ the wage rate and ________ the level of employment.

Accepted Answer

When a union restricts the supply of labor, it typically raises the wage rate because the reduced supply of labor increases the bargaining power of the workers. However, by raising the wage rate, employers may hire fewer workers, thus decreasing the level of employment.

Question 3

If the supply of labor increases,then the equilibrium wage rate ________ and the equilibrium quantity of labor ________.

Accepted Answer

According to the law of supply and demand, an increase in the supply of labor (i.e. more people seeking employment) will result in a surplus of labor, leading to a decrease in the equilibrium wage rate and an increase in the equilibrium quantity of labor hired. Therefore, the correct answer is D, which states that the equilibrium wage rate falls and the equilibrium quantity of labor increases.

Question 4

If the demand for labor decreases,then the equilibrium wage rate ________ and the equilibrium quantity of labor ________.

Accepted Answer

If the demand for labor decreases, there is a surplus of labor in the market which puts downward pressure on wages. As a result, the equilibrium wage rate falls and the equilibrium quantity of labor decreases as firms demand less labor at the lower wage rate.

Question 5

Which of the following is a method used by unions to increase the demand for their members' labor?

Accepted Answer

The answer of Which of the following is a method...

Question 6

A surplus of workers occurs

Accepted Answer

A surplus of workers, also known as unemployment, occurs when the wage rate exceeds the equilibrium wage rate. This is because employers are less willing to hire at higher wage rates, while more workers are willing to work, leading to an excess supply of labor.

Question 7

Which of the following methods is used by unions to increase the demand for the labor of its members?

Accepted Answer

Unions can support minimum wage laws which will increase the demand for their members' labor by setting a higher wage floor. This would make it more expensive for firms to hire non-union workers and encourage them to hire union workers who are already trained and experienced.

Question 8

When more people remain in school for full-time education and training,the supply of low-skilled labor ________ and the supply of high-skilled labor ________.

Accepted Answer

When more people remain in school for full-time education and training, the supply of low-skilled labor decreases as these individuals are not entering the workforce immediately. At the same time, the supply of high-skilled labor increases as these individuals are acquiring more education and training, which makes them more desirable to employers.

Question 9

-Peyton is a personal trainer and works at several gyms in her neighborhood.Peyton's labor supply curve is shown above.Which of the following statements is true regarding Peyton's labor supply?
i.Peyton is willing to supply more labor and give up leisure at wages between $50 and $75 per hour.
ii.Peyton will not work for less than $30 per hour.
iii.If the wage increases higher than $75 per hour,Peyton will choose to take more leisure.

Accepted Answer

The statements i, ii, and iii accurately describe typical behaviors associated with labor supply curves. i) indicates a range where Peyton is incentivized to work more as wages increase, ii) suggests a minimum wage Peyton requires to work, and iii) implies backward bending of the labor supply curve at higher wages, where increased income leads to a preference for more leisure over additional work.

Question 10

Suppose in Chicago,at the going wage rate of $16.00 an hour,the quantity of lifeguards demanded exceeds the quantity supplied by 13,000 lifeguards.As a result,

Accepted Answer

A shortage of lifeguards exists because the quantity of lifeguards demanded exceeds the quantity supplied. This shortage may drive up the wage rate in the long term until equilibrium is reached.

Question 11

-The figure above shows the market supply of labor curve.Which of the following might be the reason the labor supply curve shifted from S₀ to S₁?

Accepted Answer

An increase in the number of women in the workforce would shift the labor supply curve from S₀ to S₁, indicating an increase in the supply of labor.

Question 12

What is the effect on the supply of low-skilled labor of an increase in the number of people pursuing higher education?

Accepted Answer

An increase in the number of people pursuing higher education would lead to a decrease in the supply of low-skilled labor because these individuals would be more likely to pursue higher paying jobs that require their newly acquired skills and education. This would effectively reduce the pool of available low-skilled labor, causing its supply to decrease.

Question 13

Unions ________ free trade and ________ a higher minimum wage.

Accepted Answer

Unions generally oppose free trade agreements as they believe it can lead to job losses and lower wages for workers. However, they favor a higher minimum wage as it would benefit their members who are typically low-wage workers.

Question 14

A change in the wage rate

Accepted Answer

A change in the wage rate leads to a change in the quantity of labor supplied, but does not directly shift the supply of labor curve. Therefore, it leads to a movement along the supply of labor curve.

Question 15

Suppose in Philadelphia the quantity of economists demanded is less than the quantity supplied by 2,000 economists.As a result,

Accepted Answer

If the quantity of economists demanded is less than the quantity supplied, this means there is an excess supply or a surplus of economists. In order to encourage employers to hire more economists, salaries for economists would have to fall, which would shift the labor demand curve rightward until it intersects with the labor supply curve at a lower equilibrium wage. Therefore, the correct answer is B.

Question 16

Which of the following shift the supply of labor curve leftward?
i.an advancement in technology
ii.a decrease in the price of the product that the labor produces
iii.a decrease in the adult population

Accepted Answer

Only a decrease in the adult population would shift the supply of labor curve leftward, as there would be fewer workers available. An advancement in technology and a decrease in the price of the product would likely increase the demand for labor, shifting the curve rightward.

Question 17

If the wage rate increases,then

Accepted Answer

An increase in wage rate leads to a movement upward along the supply of labor curve, as higher wages incentivize individuals to supply more labor. However, it does not necessarily lead to a shift in the supply of labor curve.

Question 18

If a union is able to organize workers in a competitive labor market but the union cannot affect the demand for its members' labor,then the wage rate ________ and the quantity of labor hired ________.

Accepted Answer

In a competitive labor market, if a union organizes workers but cannot affect the demand for labor, the wage rate typically rises due to collective bargaining. However, the higher wage rate can lead to a decrease in the quantity of labor hired, as employers may seek to reduce costs or substitute labor with other inputs.

Question 19

-The figure above shows the market supply of labor curve.Which of the following might be the reason the labor supply curve shifted from S₀ to S₁?

Accepted Answer

The answer of 
-The figure above shows the market supply...

Question 20

If both the demand for labor and the supply of labor increase,then the equilibrium wage rate ________ and the equilibrium quantity of labor ________.

Accepted Answer

If both the demand for labor and the supply of labor increase, it is not possible to determine with certainty the direction of the change in equilibrium wage rate. It might rise, fall, or not change depending on the magnitude of the shifts in demand and supply. However, the equilibrium quantity of labor will increase, as the increase in both demand and supply will lead to a higher quantity of labor being employed in the market.

Quiz 19: Markets for Factors of Production

According to a recent prediction in The Wall Street Journal the adult population of Russia will decline dramatically over the next few decades.If this prediction is correct,the supply of labor in Russia will

If a union restricts the supply of labor,it the wage rate and the level of employment.

If the supply of labor increases,then the equilibrium wage rate and the equilibrium quantity of labor .

If the demand for labor decreases,then the equilibrium wage rate and the equilibrium quantity of labor .

Which of the following is a method used by unions to increase the demand for their members' labor?

A surplus of workers occurs

Which of the following methods is used by unions to increase the demand for the labor of its members?

When more people remain in school for full-time education and training,the supply of low-skilled labor and the supply of high-skilled labor .

Suppose in Chicago,at the going wage rate of $16.00 an hour,the quantity of lifeguards demanded exceeds the quantity supplied by 13,000 lifeguards.As a result,

-The figure above shows the market supply of labor curve.Which of the following might be the reason the labor supply curve shifted from S₀ to S₁?

What is the effect on the supply of low-skilled labor of an increase in the number of people pursuing higher education?

Unions free trade and a higher minimum wage.

A change in the wage rate

Suppose in Philadelphia the quantity of economists demanded is less than the quantity supplied by 2,000 economists.As a result,

Which of the following shift the supply of labor curve leftward? i.an advancement in technology ii.a decrease in the price of the product that the labor produces iii.a decrease in the adult population

If the wage rate increases,then

If a union is able to organize workers in a competitive labor market but the union cannot affect the demand for its members' labor,then the wage rate and the quantity of labor hired .

-The figure above shows the market supply of labor curve.Which of the following might be the reason the labor supply curve shifted from S₀ to S₁?

If both the demand for labor and the supply of labor increase,then the equilibrium wage rate and the equilibrium quantity of labor .