Question 1

The Black Death in fourteenth-century Europe resulted in

Accepted Answer

The answer of The Black Death in fourteenth-century Europe resulted...

Question 2

Suppose that a toxic waste spill renders half of the land in New Jersey uninhabitable. Assuming that land and labor are complements in the production function, what would happen to the wages earned by workers and rents earned by landowners?

Accepted Answer

Since land and labor are complements in the production function, a decrease in the amount of available and usable land will reduce productivity and output. As a result, the demand for labor decreases, causing a decrease in wages. On the other hand, the decrease in available land will reduce the supply of land, causing rents to increase. Therefore, the wages earned by workers would decrease, and the rents earned by landowners would increase.

Question 3

Suppose that the labor market for high school chemistry teachers is initially in equilibrium. Chemistry teachers use laboratory chemicals as an important part of their jobs. New environmental regulations ban the use of many chemicals, which means that fewer laboratory chemicals are available for high school chemistry teachers to use in their jobs. What happens to the equilibrium wage and quantity of high school chemistry teachers?

Accepted Answer

The answer of Suppose that the labor market for high...

Question 4

A decrease in population can be expected to

Accepted Answer

A decrease in population means less demand for housing and land, which would lead to a decrease in rents on land.

Question 5

Suppose that the labor market for life guards is initially in equilibrium. Then a new television series debuts which glamorizes the social opportunities for life guards. What happens to the equilibrium wage and quantity of life guards?

Accepted Answer

The answer of Suppose that the labor market for life...

Question 6

An increase in population can be expected to

Accepted Answer

The answer of An increase in population can be expected...

Question 7

Suppose that the labor market for life guards is initially in equilibrium. Whistles are an important safety tool that life guards use as a part of their jobs. A fire destroys the largest factory that produces whistles. In the market for life guards the equilibrium wage

Accepted Answer

The destruction of the factory that produces whistles would decrease the marginal productivity of life guards since they are now unable to use this important safety tool. As a result, the demand for life guards would decrease, leading to a decrease in the equilibrium wage.

Question 8

Suppose that the labor market for life guards is initially in equilibrium. Then the marginal productivity of life guards increases. What happens to the equilibrium wage and quantity of life guards?

Accepted Answer

When the marginal productivity of life guards increases, it means that they are becoming more valuable to employers. This will shift the demand for life guards to the right, resulting in a higher equilibrium wage and a higher equilibrium quantity of life guards. This is because more employers will be willing to hire life guards at a higher wage, and more people will be willing to become life guards at a higher wage. Therefore, option A is the correct choice.

Question 9

Suppose that a rare virus infects and kills a significant percentage of the population. Assuming that land and labor are complements in a farming production function, what would happen to the wages earned by workers and the rents earned by landowners?

Accepted Answer

With a significant decrease in population, the labor supply will decrease, resulting in an increase in wages. However, since land and labor are complements in the production process, the decrease in population will also cause a decrease in the demand for land, which will lead to a decrease in rents earned by landowners.

Question 10

Suppose that the labor market for high school chemistry teachers is initially in equilibrium. Chemistry teachers use laboratory chemicals as an important part of their jobs. New environmental regulations ban the use of many chemicals, which means that fewer laboratory chemicals are available for high school chemistry teachers to use in their jobs. In the market for high school chemistry teachers, the equilibrium wage

Accepted Answer

The decrease in available laboratory chemicals decreases the marginal productivity of high school chemistry teachers, as they have less resources to use in their teaching. This decrease in productivity means that employers are willing to pay a lower wage, which shifts the equilibrium wage downwards. Therefore, the correct answer is that the equilibrium wage decreases because the marginal productivity of high school chemistry teachers decreases.

Question 11

The Black Death in fourteenth-century Europe resulted in

Accepted Answer

The Black Death led to a significant reduction in the population of Europe, which resulted in higher wages for surviving workers. With a lower number of workers, the marginal product of labor increased, leading to higher wages for surviving workers.

Question 12

Suppose that a large tornado destroys the fleet of fire trucks for the city of Omaha, Nebraska. What happens to the earnings of firefighters in Omaha?

Accepted Answer

The answer of Suppose that a large tornado destroys the...

Question 13

The Black Death in fourteenth-century Europe resulted in

Accepted Answer

The answer of The Black Death in fourteenth-century Europe resulted...

Question 14

Suppose that due to a severe drought in Texas, 100,000 farmers relocate from Texas to Louisiana. Assuming that land and labor are complements in a farming production function, what would happen to the wages earned by workers and the rents earned by landowners in Louisiana?

Accepted Answer

The answer of Suppose that due to a severe drought...

Question 15

The effect of the Black Death in 14th-century Europe was to

Accepted Answer

The answer of The effect of the Black Death in...

Question 16

Suppose that a large lake in the middle of Minnesota evaporates, leaving more fertile farm land for growing corn available. Assuming that land and labor are complements in a farming production function, what would happen to the wages earned by workers and rents earned by landowners?

Accepted Answer

With additional fertile land available for growing corn, the demand for labor would increase as additional workers are needed to cultivate the new land. This increase in demand would put upward pressure on wages, resulting in an increase in wages earned by workers. On the other hand, with additional land available, the supply of land for cultivation would increase, leading to a decrease in rents earned by landowners. Thus, wages would increase, while rents would decrease.

Question 17

Suppose that the labor market for life guards is initially in equilibrium. Then swimming pool owners adopt a new labor-saving technology that uses computers to monitor the locations of swimmers in the pool. What happens to the equilibrium wage and quantity of life guards?

Accepted Answer

The answer of Suppose that the labor market for life...

Question 18

Suppose that a large rogue wave destroys the (thankfully unoccupied) fleet of swordfish fishing boats docked in the Gloucester, Massachusetts harbor. What happens to the earnings of fishermen and women in Gloucester?

Accepted Answer

The destruction of fishing boats reduces the supply of fishing vessels, which decreases the marginal productivities of fishermen and women as they have fewer resources to catch fish. This decrease in marginal productivity leads to a decrease in the equilibrium wage. Therefore, option B is the correct choice.

Question 19

Suppose that the labor market for life guards is initially in equilibrium. Whistles are an important safety tool that life guards use as a part of their jobs. A fire destroys the largest factory that produces whistles. What happens to the equilibrium wage and quantity of life guards?

Accepted Answer

The answer of Suppose that the labor market for life...

Question 20

According to the neoclassical theory of distribution, the wages paid to workers

Accepted Answer

Neoclassical theory of distribution states that the prices of factors of production are determined by their marginal productivity in the production process. In the case of labor, this means that wages will reflect the market prices of the goods and services produced by the workers. The more productive the workers are, the higher their wages will be. Therefore, answer A is correct because it reflects the neoclassical theory of distribution.

Quiz 18: The Markets for the Factors of Production

The Black Death in fourteenth-century Europe resulted in

Suppose that a toxic waste spill renders half of the land in New Jersey uninhabitable. Assuming that land and labor are complements in the production function, what would happen to the wages earned by workers and rents earned by landowners?

A decrease in population can be expected to

Suppose that the labor market for life guards is initially in equilibrium. Then a new television series debuts which glamorizes the social opportunities for life guards. What happens to the equilibrium wage and quantity of life guards?

An increase in population can be expected to

Suppose that the labor market for life guards is initially in equilibrium. Whistles are an important safety tool that life guards use as a part of their jobs. A fire destroys the largest factory that produces whistles. In the market for life guards the equilibrium wage

Suppose that the labor market for life guards is initially in equilibrium. Then the marginal productivity of life guards increases. What happens to the equilibrium wage and quantity of life guards?

Suppose that a rare virus infects and kills a significant percentage of the population. Assuming that land and labor are complements in a farming production function, what would happen to the wages earned by workers and the rents earned by landowners?

The Black Death in fourteenth-century Europe resulted in

Suppose that a large tornado destroys the fleet of fire trucks for the city of Omaha, Nebraska. What happens to the earnings of firefighters in Omaha?

The Black Death in fourteenth-century Europe resulted in

Suppose that due to a severe drought in Texas, 100,000 farmers relocate from Texas to Louisiana. Assuming that land and labor are complements in a farming production function, what would happen to the wages earned by workers and the rents earned by landowners in Louisiana?

The effect of the Black Death in 14th-century Europe was to

Suppose that a large lake in the middle of Minnesota evaporates, leaving more fertile farm land for growing corn available. Assuming that land and labor are complements in a farming production function, what would happen to the wages earned by workers and rents earned by landowners?

Suppose that the labor market for life guards is initially in equilibrium. Then swimming pool owners adopt a new labor-saving technology that uses computers to monitor the locations of swimmers in the pool. What happens to the equilibrium wage and quantity of life guards?

Suppose that a large rogue wave destroys the (thankfully unoccupied) fleet of swordfish fishing boats docked in the Gloucester, Massachusetts harbor. What happens to the earnings of fishermen and women in Gloucester?

Suppose that the labor market for life guards is initially in equilibrium. Whistles are an important safety tool that life guards use as a part of their jobs. A fire destroys the largest factory that produces whistles. What happens to the equilibrium wage and quantity of life guards?

According to the neoclassical theory of distribution, the wages paid to workers