Question 1

Customer service jobs are easily outsourced.Graph the following for the market for customer service,and explain what happens to wages and the quantity of labor.
a.What are the short-run effects of this outsourcing on the home country?
b.What are the effects in the foreign country?
c.Who wins and loses in these moves?

Accepted Answer

The answer of Customer service jobs are easily outsourced.Graph the...

Question 2

The following table includes information on the labor market for bakers:
 
a.What is the equilibrium wage and quantity of bakers in this market? 
b.With the invention of instant teleportation,baker positions can be outsourced to countries with cheaper labor without sacrificing freshly baked goods.This reduces the labor demand for bakers by four-fifths.What is the new equilibrium wage and quantity of bakers hired?
c.Who wins in this situation in the short run? Who loses? What needs to happen in the long run so that the economic losers can benefit from outsourcing?

Accepted Answer

The answer of The following table includes information on the...

Question 3

Consider the labor market for artisanal bakers in the United States.What would happen to labor demand or labor supply if the following situations occurred?

a.Fast-food restaurants and restaurant chains start promoting artisanal foods in order to draw a more sophisticated clientele,and the ad campaign works.
b.Happy that their talents are being recognized,artisanal bakers increase their rate of production.
c.Social norms used to make it difficult for women to be artisanal bakers,but these norms have decreased over time.
d.Tighter immigration laws prevent European bakers from entering the United States to take advantage of higher wages and benefits.
e.Droughts have reduced the supply of wheat,which lowers the available amount of flour.

Accepted Answer

The answer of Consider the labor market for artisanal bakers...

Question 4

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 5

Use the following table to answer the following questions:
 
-What is the value that belongs in cell F3?

Accepted Answer

The answer of Use the following table to answer the...

Question 6

Use the following table to answer the following questions:
 
-What is the value that belongs in cell D4?

Accepted Answer

The answer of Use the following table to answer the...

Question 7

The following table contains the relationship between a number of trainers working at the new gym (Crossfit by Shawna)and how many clients they can train.These clients represent the output of trainers.Clients pay $40 per session.
a.Find the marginal product of labor (MPL)and the value of the marginal product of labor (VMPL)for each additional trainer hired,and record these numbers in columns on the table.
  
b.Crossfit by Shawna's premier trainers earn $200 an hour.How many trainers will the gym hire?

Accepted Answer

The answer of The following table contains the relationship between...

Question 8

Lakeside Tubing knows that its total product schedule is as shown in the following table.It currently rents an inner tube for $5.Graph the labor demand curve.

Accepted Answer

The answer of Lakeside Tubing knows that its total product...

Question 9

Use the following table to answer the following questions:
 
-What is the value that belongs in cell C6?

Accepted Answer

Cell C6 represents the total number of people who prefer dogs and cats as pets. Adding the numbers in cells B6 and C5 gives us 50.

Question 10

Consider the labor market for autoworkers.Graph and explain how the following events would affect the labor demand curve for these workers:
a.Citizens become more concerned about the environment,choosing public transportation over motor vehicles.
b.Domestic pressures and governmental policy make it harder for firms to outsource their production to other countries.As business expands,firms must hire domestically.
c.Assembly line technology improves to the point where only a handful of workers are needed to operate the production system.

Accepted Answer

The answer of Consider the labor market for autoworkers.Graph and...

Question 11

Which of the following would increase the demand for labor?

Accepted Answer

An increase in the product price and a labor-enhancing machine acquisition would increase the demand for labor. An increase in the product price would increase demand for the product, leading to an increase in production and hence an increase in the demand for labor. A labor-enhancing machine acquisition would lead to an increase in the productivity of labor, which would lead to an increase in the demand for labor.

Question 12

You and your friend get into an argument when she finds out that you earn more than she does.She says it isn't fair,but you argue that there are many reasons why you legitimately earn more.Explain two possible reasons in detail.

Accepted Answer

The answer of You and your friend get into an...

Question 13

Use the following table to answer the following questions:
 
-What is the value that belongs in cell F5?

Accepted Answer

The value in cell F5 is calculated based on the context or formula provided in the spreadsheet, which is not visible here. However, based on the options, $-100 is the correct choice.

Question 14

Use the following table to answer the following questions:
 
-What is the value that belongs in cell D6?

Accepted Answer

Without additional context or data, it's not possible to determine the exact value for cell D6. However, if this is a continuation of a pattern or sequence, $150 might be a reasonable guess based on typical increments.

Question 15

A firm calculates that the marginal product of labor (MPL)can be found from the following equation: MPL = 35 - 2L where L is the number of workers hired. The production function for this firm is as follows: Q = 35L - L² The firm knows it can find profits with the following equation: Profit = P * Q - W * L where P stands for the selling price of the good,Q stands for total output,and W represents the wage.Price is equal to $1. a.If the wage is $11,how many workers will the firm hire? How much profit will it earn? b.Compare this level of profits to those earned by the firm if it hired one fewer worker than L* and one worker more than L* to demonstrate that L* workers generate the most profit for the firm.

Accepted Answer

The answer of A firm calculates that the marginal product...

Question 16

Assume that consumer demand for hybrid vehicles is increasing and that for large SUVs it is decreasing.The labor supply is the same for both markets.
a.How does this difference in consumer demand affect the labor demand for workers producing hybrid vehicles versus that of workers making SUVs? 
b.Using a supply and demand graph and your answer to part a,show why workers producing hybrids earn more than workers who build SUVs.

Accepted Answer

The answer of Assume that consumer demand for hybrid vehicles...

Question 17

Assume that the labor market for coffee roasters is in equilibrium. a.Graph this labor market. b.A new ad campaign by the coffee industry,"A coffee a day keeps the sleepies away," is successful and consumers prefer more coffee.Graph the effect of this on equilibrium wages W₁ and quantity of labor L₁of workers.Label the new equilibrium W₂ and L₂. c.At the old W₁,what situation exists? How does the labor market adjust to the new W₂?

Accepted Answer

The answer of Assume that the labor market for coffee...

Question 18

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 19

Use the following table to answer the following questions:
 
-If the workers are paid $10 per hour,the price of the product is $4,and the fixed cost of the business is $10,then how many workers should the business employ?

Accepted Answer

To find the optimal number of workers, we need to calculate the total cost and total revenue and then determine at which point the profit is maximized. 
Total cost = Fixed cost + (Variable cost per unit x Quantity)
Variable cost per unit = (Total labor cost/Total units produced)
Total labor cost = (Number of workers x Hours worked x Hourly rate)
Total units produced = (Number of workers x Hours worked/hour per unit)
Total cost = 10 + [(10h x $10/h)/h + $4/h x (10h/$1)]
Total cost = 10 + $100 + $400
Total cost = $510
Total revenue = Price per unit x Quantity
Quantity = Number of workers x Hours worked/hour per unit
Quantity = 5 x 10/1
Quantity = 50 units
Total revenue = $4 x 50 = $200
Total profit = Total revenue - Total cost
Total profit = $200 - $510
Total profit = -$310 (loss)
Therefore, at 5 workers, the business will incur a loss. Thus, the business should employ fewer workers. The next lower whole number from 5 that results in a positive profit is 4.  So, the business should employ 4 workers to maximize profits.

Question 20

The total production schedule for greeting card writers is as follows:
a.Find the marginal product for each additional worker,and graph the marginal product of labor (MPL)curve.
  
b.Why is the slope of the MPL curve negative?

Accepted Answer

The answer of The total production schedule for greeting card...

Quiz 14: The Demand and Supply of Resources

Use the following table to answer the following questions: -What is the value that belongs in cell F3?

Use the following table to answer the following questions: -What is the value that belongs in cell D4?

Lakeside Tubing knows that its total product schedule is as shown in the following table.It currently rents an inner tube for $5.Graph the labor demand curve.

Use the following table to answer the following questions: -What is the value that belongs in cell C6?

Which of the following would increase the demand for labor?

You and your friend get into an argument when she finds out that you earn more than she does.She says it isn't fair,but you argue that there are many reasons why you legitimately earn more.Explain two possible reasons in detail.

Use the following table to answer the following questions: -What is the value that belongs in cell F5?

Use the following table to answer the following questions: -What is the value that belongs in cell D6?

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?

Use the following table to answer the following questions: -If the workers are paid $10 per hour,the price of the product is $4,and the fixed cost of the business is $10,then how many workers should the business employ?

The total production schedule for greeting card writers is as follows: a.Find the marginal product for each additional worker,and graph the marginal product of labor (MPL)curve. b.Why is the slope of the MPL curve negative?