Answered: As the __________ substitute for…

As the __________ substitute for low-skill labor becomes available, the demand curve for low-skill labor will shift to the left. high-skill labor lower wage technology market

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: What is the effect of a wage increase from $35/hour to $40/hour on her weekly labor income? Go back…

A: The own wage elasticity comes out to be 0.4 , which means that the increase in the wage causes the…

Q: 4 Other things being equal, the elasticity of demand for labor will be greater the Multiple Choice O…

A: The elasticity of demand:The elasticity of demand refers to the changes in the demand when the…

Q: Firms will hire more workers as long as the marginal product of labor is positive. the marginal…

A: The rule which firms follow to hire more worker: P * MPL = W Labor participation rate is the ratio…

Q: Which of the following would improve a worker’s marginal product? Group of answer choices an…

A: The marginal product of labour (or MPL) alludes to an organization's expansion in all-out production…

Q: The backwards bending part of the labour supply happens because the substitution effect is greater…

A: A general labor supply curve shows the relationship between labor and wages. It is an upward sloping…

Q: Draw a downward-sloping demand curve for labor and an upward-sloping supply curve of labor in a…

A: Labour demand and labour supply curve are very significant in the determination of real wage rate .…

Q: What happens to either the supply or demand curves for labor in the following situations: a) On…

A: Disclaimer :- As you posted multipart question we are supposed to solve the first 3 parts only as…

Q: If the opportunity cost of working outside the home increases, then ________ the labor supply curve,…

A: When an individual, an investor, or a corporation chooses one option over another, opportunity costs…

Q: On the following page, complete the labor demand table for a firm that is hiring labor competitively…

A: The number of employees that companies are ready to recruit at various wage levels is reflected in…

Q: excess supply

A: Any good needs factors of production to produced. A major factor of production is labour(L). And the…

Q: Give typing answer with explanation and conclusion 3. The general assumption is that the demand for…

A: The demand for labor and the demand for products is always interdependent. The conventional wisdom…

Q: If an individual labor supply curve bends backward at some high wage, so does the market labor…

A: The labor supply curve depicts the relationship between the quantity of labor supplied (L) by an…

Q: Explain how changes in technology affect and change the demand for labor. Distinguish between…

A: Technological change can be either labor saving or labor augmenting. Under labor saving…

Q: 4. Inclusive, or industrial, unions - Negotiating a higher industry wage Consider the housing…

A: Answer: (1). The following graph shows the impact of wage increase from $15 to $20 per hour on the…

Q: How each of the following situations will affect labour demand, i.e. if it will cause a movement…

A: Labor demand curve shows the inverse relationship between wage rate and quantity of labor demanded.…

Q: Part a. What is the marginal physical product(MPP) of the third unit of labor hired? Part b. What is…

A: The marginal revenue productivity theory states that a profit maximizing firm will hire workers up…

Q: 1. Is the price elasticity of demand for gasoline more INELASTIC over a shorter or a longer period…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: In a competitive labor market any one firm has complete control over the wage that it pays its…

A: A market is a place where the buyers and sellers interact and exchange goods and services. A labor…

Q: Question Three Firm's Demand for Labour in the Short Run a) What are the two profit-maximizing…

Q: tion 28 In a perfectly competitive labor market, a profit-maximizing firm that is also perfectly…

A: In a perfectly competitive labor market, there are many employers and employees with perfect…

Q: The backward bending supply curve for labour: depicts the decreasing labour costs involved in…

A: The entire amount of labor that workers are willing and able to offer to the market at various wage…

Q: Complete the following labor demand table for a firm that is hiring labor competitively and selling…

A: Imperfect competitive market units of Labor Total Product Marginal Product Product price Total…

Q: Which of the following would shift a market labor supply curve to the left? Group of answer choices…

A: Supply curve is the graphical representation of producers' production actually supplied to the…

Q: Suppose the Occupational Safety and Health Administration were to mandate that all punch presses be…

A: The labor is demanded till the point where the marginal cost of hiring an additional worker is equal…

Q: Need some assistance with question. Explain and discuss the relationship between the elasticity of…

A: Elasticity is a measure of a variable's sensitivity to a change in another variable; it is most…

Q: Short run labor demand (known as effective labor demand) is determined by what? The amount of…

A: In economics, we study how scarce resources are used by decision-makers to satisfy the unlimited…

Q: Advancement in technology that improves labor productivity will result in the firm's…

A: The labor market is like the goods market where the quantity of laborers to be employed is chosen by…

Q: When the price of a firm's good or service falls, then the firm's demand curve for labor will shift…

A: Derived demand, depending on labor productivity, the firm's earnings, demand for firms' services and…

Q: A measure of how sensitive the amount of labor firms will hire is to changes in the wage rate.

A: Explanation: The physical property of labor demand is the quantitative relation of the…

Q: If the price of a good increases, then in the market for the type of labor needed to produce this…

A: A firm hires the labor till the marginal revenue product (i.e., MRP) is greater than or equal to the…

Q: The motivation for many people pursuing a college degree is to improve their human capital. Describe…

A: The human capital is the skill, knowledge that one acquire by either training, studying or by…

Q: hich of the following is likely to increase the supply of labour? a decrease in fringe benefits…

A: Increase in the labour supply leads to cheaper availability of labor in the market. It reduces the…

Q: As employment of labor increases, the marginal product of labor will eventually decrease because A)…

A: Production is the engine that drives an economy forward, with commodity and service pairing fuelling…

Q: Complete the following labor demand table for a firm that is hiring labor competitively and selling…

Q: Explain the relationship between the own-wage elasticity of labor demand and output demand…

A: Answer: Introduction: Own-wage elasticity of labor demand: the own-wage elasticity of labor demand…

Q: Changes in labor supply curve (shift) in labor market and thus changes in equilibrium wages and…

A: Labor supply curve shows different combinations of wage and quantity of labor supplied

Q: Which of the following factors would shift the market labor supply curve to the right? A. A…

A: Labor supply curve shows positive relationship between wage and quantity of labor supplied.Rightward…

Q: Suppose initially that immigrant labor and native-born labor are complementary resources. Explain…

A: Complementary resources are the resources that are used together to achieve one objective or to…

Question

As the __________ substitute for low-skill labor becomes available, the demand curve for low-skill labor will shift to the left.

		high-skill labor
		lower wage
		technology
		market

Video Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction

VIEW

Step 2: Calculation

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

In 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 relationship
In a competitive labour market, an increase in the demand for labour might be due to an increase in the supply of the product that labour produces. supply of labour. wage rate. supply of the other factors. demand for the product that labour produces.
How can an upward-sloping labor supply curve for an individual employer become horizontal? What are the effects of such a change on wage and employment levels of that firm?
Describe the construction of the firm’s demand curve for labour in the short run.Describe the relationship between the firm's demand curve for labour in the short-run andthe market demand curve for labour in the short-run. In particular, is one curve likely to bemore or less elastic than the other? Explain your answer.
Ideal Employment Market 120 100 80 60 40 20 1357 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 Supply of Labor Demand for Unskiled Labor Demand for Low-skilled Labor Demand for High-skiled Labor Unskilled workers would work eleven hours a week and get paid $6 an hour. Low-skilled workers would work nineteen hours a week and get paid $18.50 an hour. High-skilled workers would work forty-one hours a week and get paid $40 an hour. These numbers are hypothetical, but they are plausible based upon current trends. Since 1985, less skilled workers, judging by their level of education, have been working fewer hours than in the past, while highly skilled workers, again judging by their level of education, work approximately the same number of hours as they did fifty years ago (Aguiar and Hurst 2007). Unskilled workers cannot work as Click Save and Submit to save and submit. Click Save All Answers to save all answers. Unskilled workers would work eleven hours a week and…
Describe the construction of the firm’s demand curve for labour in the short run. Describe the relationship between the firm's demand curve for labour in the short-run and the market demand curve for labour in the short-run. In particular, is one curve likely to be more or less elastic than the other? Can you please specify why the curve is more elastic than the other. And include diagram
Consider the following labor supply and demand curves. For each of the following situations, show and explain what would happen to the labor market. a) The firm finds a new market for their output. Wage WE S Quantity
Consider a perfectly competitive labour market that is initially in equilibrium. The country within which this labour market is located has not previously accepted immigrants, but is now considering whether or not to change this policy and start accepting immigrants. One of the key ideas being considered is the impact that immigrants will have on the equilibrium wage earned by local workers in the aforementioned labour market. The country's Prime Minister has asked you to provide them with advice on the matter. a) First, the Prime Minister would like to better understand the reasons why the introduction of immigrants into their country might result in a lower equilibrium wage in the aforementioned perfectly competitive labour market. Describe the general logic as to how the introduction of immigrants into a perfectly competitive labour market might result in a lower equilibrium wage. b) Next, the Prime Minister would like to better understand the reasons why the introduction of…
In a competitive labor market, employers will not pay less than the market wage because at a wage below the equilibrium A) the equilibrium wage would rise B) they would not be able to hire anyone C) there would be a surplus of workers D) they would be inundated with excess workers
WAGE RATE Assume that the accounting and actuarial industries employ people with similar skills. Suppose an increase in the demand for actuaries leads to a rise in their wages, while the demand for accountants remains the same. The following graph shows the labor market for accountants in the United States. Show the effect of the rise in demand for actuaries on the U.S. labor market for accountants by shifting the labor demand curve, the labor supply curve, or both. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. QUANTITY OF LABOR о Supply Demand Demand Supply As a result, the wage rate for U.S. accountants and the level of employment ?
Suppose the hourly wage rate is $14, the rental price of capital is $2 and the price of output is constant at $42 per unit. Firm's production technology is q = 4K0.25 0.75, the marginal product of employment is MPE =3K0.25E-0.25 and the marginal product of capital is MPK = K™ 0.75 0.75. What is firm's optimal demand of labor if firm plans to produce q=19 units of outputs in the long-run? (please keep 1 decimal place in your answer)
Consider the fast food industry in the United States. Research existing estimates of the demand for fast food, the labor share for fast food, and the elasticity of substitution between capital and labor in the fast food industry. Based on the estimates in the literature, what is a plausible range of values for the elasticity of labor demand for the fast food industry? Thanks!