Contemporary Labor Economics
11th Edition
ISBN: 9781259290602
Author: Campbell R. McConnell, Stanley L. Brue, David Macpherson
Publisher: McGraw-Hill Education
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Chapter 1, Problem 2QS
To determine
Reason for scarcity of labours even though the economy is experiencing
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Chapter 1 Solutions
Contemporary Labor Economics
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- Which of the following points on the Production Possibilities Curve represents the highest unemployment? A) C B) X C) S D) farrow_forwardWhy is immigration central to what a free market means?arrow_forwardWhile traveling by car during one of his many overseas travels, a famous economist spotted scores of road builders moving earth with shovels instead of modern machinery. When he asked why powerful equipment wasn’t used instead of so many laborers, his host told him it was to keep employment high in the construction industry. If they used tractors or modern road building equipment, fewer people would have jobs was his host’s logic. “Then instead of shovels, why don’t you give them spoons and create even more jobs?” the Nobel Laureate inquired. Who used this story to illustrate the power of human capital enhanced by productivity?arrow_forward
- Suppose that there is sudden new trend for high school students all over the Philippines to ride bicycles. More how would the price system decides "who should get what is produces?" How would be the inputs used in bicycle production be affected?arrow_forwardIn a market economy, the compensation of labour is determined by the interaction of demand and supply in each labour market, relative compensation by the interaction of relative demand and supply. A higher price for labour leads to a higher quantity of labour supplied, a lower price leads to a lower quantity supplied and prices and wages help coordinate economic activities. Do you agree this statement if so Why?arrow_forwardQ84 The law of one price says that the price of... a. Labour, measured in terms of its opportunity cost, is the same in all markets. b. A product that is costless to transport will be the same in all markets. c. A product is always equal to the absolute cost of the resources that went into its production in any country. d. Natural resources is the same in all markets. e. A product worldwide is always equal to the cost of production from the country with the lowest opportunity cost to make the product.arrow_forward
- Which is not a factor of production? Money Land Labor Capital 2 A point outside the production possibilities curve is attainable, but there is not full employment attainable, but there is not optimal allocation unattainable because the economy is inefficient unattainable because of limited resources 3. A basic characteristic of a command system is that wages paid to labor are higher government owns most economic resources free markets are never permitted in a command economy government planners play a limited role in deciding what goods will be producedarrow_forwardAn example of gains from trade is that people sell their labor for money and spend that money on food because: Answer choices employers gain from running their businesses. people gain because they can earn money from trading. people value their time, so they sell it for money. more benefits can be had by specializing in one task and then trading for other goods and services than doing every task by oneself.arrow_forwardA computer systems engineer could paint his house, but it makes more sense for him to hire a painter to do it. Explain whyarrow_forward
- Nation alpha can produce either 3 units of good X or 1 unit of good Y with 1 hour of labour whereas nation beta can produce either 4 units of good X or 2 units of good Y with one hour of labor . Assuming that labor is the only input then ?arrow_forwardDefine Production opportunitiesarrow_forwardThe central question in economics is how toa) make the best use of scarce resources.b) use government planning agencies.c) induce people to want less.d) increase human knowledge.arrow_forward
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