Question 1

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 each life guard is able to provide more value or output to the employer. This will lead to an increase in demand for life guards, pushing up their equilibrium wage as employers are willing to pay more to hire these more productive workers. At the same time, as the wage increases, more people will be willing to work as life guards, increasing the quantity of life guards employed in the market. Therefore, both equilibrium wage and quantity increase.

Question 2

Suppose that a college physics experiment goes horribly wrong and releases an electronic pulse that renders all electronic equipment in the city of San Francisco,California permanently useless.No people are hurt,and no buildings are damaged.After the accident,the wages earned by California workers will

Accepted Answer

When electronic equipment in a city is permanently rendered useless, it can lead to a significant decrease in productivity, particularly in industries that heavily rely on technology. This could lead to decreased economic output and lower wages for workers as a result. Therefore, the correct answer is B, as the marginal productivities of workers will likely decrease.

Question 3

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 4

The Black Death in fourteenth-century Europe resulted in

Accepted Answer

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

Question 5

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 6

A decrease in population can be expected to

Accepted Answer

A decrease in population means there are fewer people competing for land, which decreases the demand for it. This decrease in demand should lead to a decrease in rents on land as landlords compete for fewer renters.

Question 7

The Black Death in fourteenth-century Europe resulted in

Accepted Answer

The Black Death reduced the labor force, leading to a scarcity of workers. This scarcity resulted in a higher marginal product of labor of surviving workers. With fewer workers, each worker was more productive and their wages increased as a result.

Question 8

Which of the following statements is correct?

Accepted Answer

The answer of Which of the following statements is correct?
...

Question 9

An increase in population can be expected to

Accepted Answer

An increase in population will increase the demand for goods and services, implying an increase in the demand for land as well. As a result, the marginal product of land will increase, which means that with each additional unit of land, the total output will increase. Therefore, choice A is the correct answer. Choice B is incorrect because an increase in population would not decrease the supply of land. Choice C is incorrect because an increase in population would increase the demand for land, which would increase the rents on land. Choice D is incorrect as an increase in population would increase the demand for land.

Question 10

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

If a significant percentage of the population is killed by a virus, the labor force would decrease. In a scenario where land and labor are complements, the decrease in labor makes land less productive, reducing the demand for land. Consequently, rents for landowners would decrease. However, the reduced labor force would also mean that the remaining workers are in shorter supply, leading to an increase in wages due to the increased demand for the now scarcer labor.

Question 11

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 12

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 13

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 availability of land would reduce the productivity of labor, leading to a decrease in wages earned by workers. However, since the supply of land has decreased, rents earned by landowners would increase as the demand for the remaining land would be higher. Therefore, wages would decrease, and rents would increase.

Question 14

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

When the lake evaporates, more fertile land becomes available for growing corn. This increase in the availability of land causes an increase in the supply of land, which leads to a decrease in land rents. However, the increased availability of land also leads to an increase in the demand for labor, as more workers are needed to cultivate the additional land. This increase in labor demand will push up wages. Therefore, wages would increase, and rents would decrease.

Question 15

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 16

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 17

Suppose that due to flooding in Louisiana,100,000 farmers relocate from Louisiana to Texas.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 Texas?

Accepted Answer

The answer of Suppose that due to flooding in Louisiana,100,000...

Question 18

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 availability of laboratory chemicals means that the marginal productivity of high school chemistry teachers decreases. This means that the demand for high school chemistry teachers decreases, and therefore the equilibrium wage will decrease as well (due to a decrease in demand for the teachers).

Question 19

Suppose that an industrial accident at a factory destroys a significant number of high-speed blenders that bartenders use to mix frozen drinks.What will happen in the labor market for bartenders?

Accepted Answer

The destruction of high-speed blenders reduces the capacity to serve customers efficiently, likely decreasing demand for bartenders as fewer frozen drinks can be made. This would lead to both lower wages and employment in the bartender labor market.

Question 20

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.

Quiz 18: The Market for the Factors of Production

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 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 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?

A decrease in population can be expected to

The Black Death in fourteenth-century Europe resulted in

Which of the following statements is correct?

An increase in population can be expected to

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?

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?

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

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?

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 a new television series debuts which glamorizes the social opportunities for life guards.What happens to the equilibrium wage and quantity of life guards?

Suppose that due to flooding in Louisiana,100,000 farmers relocate from Louisiana to Texas.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 Texas?

Suppose that an industrial accident at a factory destroys a significant number of high-speed blenders that bartenders use to mix frozen drinks.What will happen in the labor market for bartenders?

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