Question 1

The labor supply curve shifts when

Accepted Answer

The labor supply curve shifts when workers change the number of hours that they want to work at any given wage. This could be due to factors such as changes in lifestyle preferences, availability of other job opportunities, or shifts in the cost of living. The other options listed may impact the demand for labor or the productivity of workers, but they do not directly affect the quantity of labor supplied at a given wage.

Question 2

Which of the following could increase the labor-supply curve for computer-repair technicians?

Accepted Answer

An increase in immigration would increase the number of people available to work as computer-repair technicians and shift the labor-supply curve to the right, increasing the quantity supplied at any given wage. The other choices would not directly affect the supply of computer-repair technicians.

Question 3

Which of the following could decrease the labor-supply curve for teachers?

Accepted Answer

If more men prefer to be stay-at-home fathers, this would decrease the labor-supply curve for teachers as there would be fewer individuals looking for teaching jobs.

Question 4

In a representative labor market,

Accepted Answer

In a representative labor market, the wage adjusts to balance the supply and demand for labor (option A), and the wage equals the value of the marginal product of labor (option B). Therefore, both options A and B are correct, and the answer is D. Option C is incorrect because an increase in the supply of labor may increase or decrease the equilibrium wage, depending on the elasticity of demand for labor. If the demand for labor is relatively elastic (i.e., responsive to changes in the wage), an increase in the supply of labor may lower the equilibrium wage, whereas if the demand for labor is relatively inelastic (i.e., unresponsive to changes in the wage), an increase in the supply of labor may have little effect on the equilibrium wage.

Question 5

What happens to the labor supply curves in both countries when Mexican workers leave Mexico and move to the United States?

Accepted Answer

When Mexican workers leave Mexico and move to the United States, the labor supply in the United States increases (as there are more available workers) while the labor supply in Mexico decreases (as there are fewer workers available). Therefore, choice C is the correct answer.

Question 6

Which of the following could increase the supply of labor in the market for cranberry pickers? (i) a change in the preferences of women toward full-time work
(ii) an increase in the output price
(iii) an increase in the wages paid to apple pickers
(iv) a decrease in the wages paid to apple pickers

Accepted Answer

(i) Women's preferences for full-time work may increase the labor supply for cranberry pickers, as they may be more willing to work in the market.
(ii) An increase in the output price of cranberries may increase the demand for labor, but it would not necessarily increase the supply of labor.
(iii) An increase in the wages paid to apple pickers would not affect the market for cranberry pickers.
(iv) A decrease in the wages paid to apple pickers may lead some workers to switch from apple picking to cranberry picking, increasing the labor supply for cranberry pickers.

Question 7

Immigration is an important

Accepted Answer

Immigration can increase the number of workers in the economy, leading to a shift in the labor supply curve. This can affect wages and employment opportunities for both native and immigrant workers.

Question 8

Scenario 18-4
In 1997, Albania experienced a civil war. The civil unrest sent thousands of refugees across the Adriatic Sea to Italy where they sought relief from the fighting.
-Refer to Scenario 18-4. The Italian government started to patrol the Adriatic Sea and had a policy of returning all refugees to Albania. This policy would contribute to

Accepted Answer

The answer of Scenario 18-4
In 1997, Albania experienced a civil...

Question 9

Scenario 18-4
In 1997, Albania experienced a civil war. The civil unrest sent thousands of refugees across the Adriatic Sea to Italy where they sought relief from the fighting.
-Refer to Scenario 18-4. The Albanian civil war probably affected Italian labor markets by causing

Accepted Answer

The civil war in Albania caused an influx of refugees into Italy, which would have increased the supply of labor in Italy. The increase in supply may have led to a decrease in the marginal product of labor, meaning that the additional workers may have been less productive than the workers already in Italy. This could have led to a decrease in wages, but not necessarily a decrease in total employment. Therefore, only option C is correct.

Question 10

Which of the following is not correct?

Accepted Answer

The answer of Which of the following is not correct?
...

Question 11

Scenario 18-5
Suppose that workers from northern Minnesota, North Dakota, and Montana decide to emigrate to southern Canada.
-Refer to Scenario 18-5. In the labor market in southern Canada, the equilibrium wage

Accepted Answer

The answer of Scenario 18-5
Suppose that workers from northern Minnesota,...

Question 12

Scenario 18-5
Suppose that workers from northern Minnesota, North Dakota, and Montana decide to emigrate to southern Canada.
-Refer to Scenario 18-5. In the labor market in the northern United States, the equilibrium wage

Accepted Answer

With workers emigrating to Canada, the supply of labor in the northern United States will decrease. As a result, the equilibrium wage will rise as employers compete for a smaller pool of workers. However, the decrease in the supply of labor will also lead to a decrease in the equilibrium quantity of labor, as there are fewer workers available for employment. Therefore, answer choice C correctly identifies that the equilibrium wage will rise, but the equilibrium quantity of labor will fall.

Question 13

Which of the following events would lead to an increase in the supply of labor?

Accepted Answer

When a country experiences an increase in immigrant labor, it leads to an increase in the supply of labor as there are more people available to provide their labor services. An increase in the price of a firm's product would not necessarily lead to an increase in the supply of labor, while the development of new labor-augmenting technology could increase the productivity of labor, but not necessarily the supply of labor itself.

Question 14

Which of the following events would shift a labor supply curve? (i) immigration of high-skilled workers
(ii) immigration of low-skilled workers
(iii) changes in the number of women willing to work full time

Accepted Answer

The answer of Which of the following events would shift...

Question 15

Which of the following events would shift the labor supply curve?

Accepted Answer

All of the above events would shift the labor supply curve.

A) Changes in the number of women willing to work would increase or decrease the supply of labor, therefore shifting the labor supply curve to the right or left. 
B) Immigration of workers would increase the number of workers in the labor force, shifting the labor supply curve to the right. 
C) Changing attitudes towards work could increase or decrease the willingness of individuals to work, which would affect the labor supply curve.

Question 16

Which of the following is correct?

Accepted Answer

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

Question 17

Suppose that the wage paid to workers who detassel corn rises. What happens in the market for workers who weed soybean fields, given that workers who detassel corn can easily work weeding soybean fields?

Accepted Answer

When the wage for de-tasseling corn increases, workers may shift from weeding soybean fields to de-tasseling corn due to the higher pay, reducing the supply of workers available for soybean weeding.

Question 18

When the wages paid to government economists increase, the labor supply curve for academic economists

Accepted Answer

When wages paid to government economists increase, it becomes more attractive to work in that sector, which leads to a decrease in the labor supply for academic economists, shifting the supply curve to the left. Therefore, the answer is A.

Question 19

What happens to labor supply in the pear-picking market when the wage paid to apple pickers increases?

Accepted Answer

When the wage paid to apple pickers increases, it becomes more attractive for workers to pick apples instead of pears. This will lead to a decrease in the labor supply for the pear-picking market.

Question 20

Immigration of workers into the United States is often an important source of

Accepted Answer

Immigration of workers into the United States increases the supply of labor. This can lead to lower wages and more competition for jobs among native-born workers, but it can also stimulate economic growth through increased production and consumption. However, the effects of immigration on the economy are complex and can vary depending on factors such as education and skill levels of immigrants, the state of the economy, and government policies.

Quiz 18: The Markets for the Factors of Production