Principles of Economics (Second Edition)
2nd Edition
ISBN: 9780393614077
Author: coppock, Lee; Mateer, Dirk
Publisher: W. W. Norton & Company
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Question
Chapter 14, Problem 7QFR
To determine
To explain:
The effect of increase in productivity of workers on demand for labor, on wages and on the number of workers hired.
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Students have asked these similar questions
Describe what happens to quantity of labor supplied when wages are at the equilibrium level, above equilibrium, and below equilibrium.
Which of the following would increase the supply of labor?
There’s a decrease in the number of workers
The amounts of capital firms have increases
The productivity of workers increases
Immigration increases the number of workers
How does the equilibrium price and quantity change when there are demands to increase wages? Are there any changes or none? Provide a graph of your answer
Chapter 14 Solutions
Principles of Economics (Second Edition)
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- Explain four ways in which a firm might increase its profits by raising the wages it pays sentence.arrow_forwardConsider a competitive labor market. Using the model of how income is determined in a labor market, describe the effects on wages and number of individuals employed of an increase in the productivity of labor in that market. What will happen and why? In your answer, be sure that you describe why the supply and demand curves are shaped as they are.arrow_forwardWhy does the collective behaviour of supply managers have such an impact on economic trends?arrow_forward
- Which of the following is likely to shift the labor supply curve to the right, assuming all else equal? A rise in the wage rate A fall in the wage rate A rise in the immigration of workers in search of better work opportunities A fall in the population of a country due to a natural disasterarrow_forwardName some factors that can cause a shift in the demand curve in labor markets.arrow_forwardGive at least ten explanations for why firms might find it profitable to pay wages above the level that balances the quantity of labor supplied and quantity of labor demanded? not copy pastearrow_forward
- Suppose that the market for labor is initially in equilibrium. An increase in the price of output will cause the equilibrium wage a. and the equilibrium quantity of labor to fall. b. and the equilibrium quantity of labor to rise. c. to rise and the equilibrium quantity of labor to fall. d. to fall and the equilibrium quantity of labor to rise.arrow_forwardTo save money, some fast food chains are now having their customers place their orders at computer kiosks. Will the kiosks necessarily reduce the total number of workers employed in the fast food industry?arrow_forwardIn a competitive labor market, the demand for and supply of labor determine the equilibrium wage rate and the equilibrium level of employment. Discuss the relationship between how these markets determine the wage rate and the quantity of labor that should be employed. Share an example, beyond your textbook, that demonstrates this relationshiparrow_forward
- The equilibrium quantity of labor increases and the equilibrium wage decreases when: A) labor supply shifts to the right, if wages are flexible, B) labor supply shifts to the left, if wages are flexible. C) labor demand shifts to the left, if wages are flexible. D) labor demand shifts to the right, if wages are flexible.arrow_forwardIn 1997 and 1998, the economy expanded, increasing the demand for labor and pushing up wages. Graph and answer the following Change in demand and supply Change in equilibrium price and quantityarrow_forward
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