Question 1

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

Accepted Answer

The answer of What happens to labor supply in the...

Question 2

Which of the following is correct?

Accepted Answer

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

Question 3

Immigration is an important

Accepted Answer

Immigration is a source of shifts in labor supply, as it increases the number of workers available in a given market, affecting wages and employment opportunities.

Question 4

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

Accepted Answer

(i) An increase/decrease in the number of workers or hours worked per day would shift the labor supply curve to the right/left.
(ii) An increase/decrease in wages of a substitute occupation (e.g., nurses' wages increasing and attracting workers away from teaching) would shift the labor supply curve to the left/right.
(iii) A change in the government policy that affects the cost and availability of child care (e.g., government-subsidized child care becoming available) would shift the labor supply curve to the right/left.

Question 5

Which of the following could increase the supply of labor in the market for cranberry pickers?

Accepted Answer

The answer of Which of the following could increase the...

Question 6

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

Question 7

Which of the following is not correct?

Accepted Answer

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

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

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 in the country. This is because immigrants, by definition, are individuals who move from one country to another seeking work opportunities, and they add to the pool of available workers in the United States. As a result, the increase in the supply of labor may lower wages for some low-skilled jobs, but it also stimulates economic growth by filling labor shortages, and creating new businesses and industries that create additional jobs for both immigrants and native-born workers.

Question 10

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

Accepted Answer

When wages increase for government economists, it becomes more attractive for academic economists to switch to government positions, causing a decrease in the supply of academic economists. This decrease in the supply of academic economists would shift the labor supply curve to the left.

Question 11

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

Accepted Answer

An increase in immigrant labor would lead to an increase in the supply of labor because there are more workers available to fill job positions. The other options listed, such as an increase in the price of a firm's product and the development of new technology, may have indirect effects on the supply of labor but would not directly lead to an increase in the number of workers available to work.

Question 12

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

Accepted Answer

An increase in immigration would increase the supply of labor for computer-repair technicians. This is because immigrants are more likely to have a lower reservation wage and may be willing to work for lower wages than the current labor force, increasing the overall supply of labor.

A) An increase in the wages paid to computer-repair technicians would not increase the labor-supply curve as it would increase the demand for the job, not the supply. 
C) A change in the work preferences of men, with more of them preferring to be stay-at-home fathers, would decrease the labor-supply curve as it would decrease the number of available workers. 
D) An increase in the wages paid to television-repair technicians would not affect the labor-supply curve for computer-repair technicians.

Question 13

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 due to the influx of workers. At the same time, the labor supply in Mexico decreases as there are fewer workers available in the country.

Question 14

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

Due to the emigration of workers from northern United States to southern Canada, the supply of labor in the labor market in the northern United States will decrease. This will result in a rise in equilibrium wage due to a decrease in the supply of labor. At the same time, the decrease in the supply of labor will result in a decrease in the equilibrium quantity of labor in the market. Therefore, the best choice is C where the equilibrium wage will rise, and the equilibrium quantity of labor will fall.

Question 15

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

As the wage for detasseling corn rises, more workers would be incentivized to take up detasseling jobs. This would lead to a decrease in the supply of workers available for weeding soybean fields, as these workers can now earn a higher wage detasseling corn. Hence, the supply curve for soybean workers would decrease.

Question 16

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

Accepted Answer

If more men prefer to be stay-at-home fathers, then there would be a decrease in the labor-supply curve for teachers, as there would be fewer people looking to work as teachers. A decrease in wages (option A) would likely result in a higher labor-supply curve, as fewer people would find the job financially attractive. An increase in immigration (option B) would increase the labor-supply curve, as there would be more people available to work as teachers. Option D is irrelevant to the labor-supply curve for teachers.

Question 17

In a representative labor market,

Accepted Answer

In a representative labor market, the wage adjusts to balance the supply and demand for labor, which is represented by choice A. Additionally, the wage equals the value of the marginal product of labor, which means that firms will only hire workers if their productivity exceeds their wages (otherwise they would lose money by hiring them). This is represented by choice B. Therefore, both options A and B are correct. An increase in the supply of labor can also affect the equilibrium wage, but this is not a defining feature of a representative labor market.

Question 18

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 19

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

Accepted Answer

All of the mentioned events can affect the labor supply curve. A change in the number of women willing to work would affect the size of the labor force and hence shift the labor supply curve. Similarly, immigration of workers would increase the number of workers available in the labor market, shifting the labor supply curve to the right. Lastly, changing attitudes towards work can result in a shift in the labor supply curve, as workers may be willing to supply more or less labor at the same wage rate depending on their preferences.

Question 20

The labor supply curve shifts when

Accepted Answer

The labor supply curve shifts when workers change the number of hours they want to work at any given wage. This can happen for various reasons, such as changes in personal priorities, family responsibilities, or opportunities for leisure activities. As a result, the labor supply curve can shift to the left or to the right depending on whether workers want to work more or less at a given wage. Employers and technology can affect the demand for labor but not the supply curve itself. Productivity can affect both the demand and supply of labor but does not necessarily shift the curve.

Quiz 18: The Markets for the Factors of Production