Assume the labor market for loggers is perfectly competitive. How would each of the following events influence the wage rate loggers are paid? a. Consumers boycott products made with wood. b. Loggers form a union that requires longer apprenticeships, charges high fees, and uses other devices designed to reduce union membership.

In a competitive labor market if the wage is $10.00 than the MRC of labor is $10.00. True or false?

How do wages affect labor supply?

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

In San Diego, 135 people are willing to work an hour as cashiers if the wage is $20 per hour. For each additional $5 that the wage rises above $20, an additional 45 people are willing to work an hour. For wages of $20, $25, $30, $35, and $40 per hour, plot the daily labor supply curve for cashiers on the following graph. WAGE (Dollars per hour) 50 45 40 35 30 25 20 15 10 5 0 0 45 90 135 180 225 270 315 LABOR (Number of workers) 360 405 450 -O- Supply (?)

The table below shows the quantity demanded and supplied in the labor market for nurses in the town of Neverland, where all nurses belong to a union. Quantity Quantity Wages per Hour Demanded of Workers Supplied of Workers $20 12,000 6,000 $25 10,000 7,000 $30 8,000 8,000 $35 6,000 9,000 $40 4,000 10,000 $45 2,000 11,000 Based on the table above, answer the following: a) What would the equilibrium wage and equilibrium quantity of workers be in this market if no union existed? JUSTIFY your answer! b) Assume that the union has enough negotiating power to raise the wage to $10 per hour higher than it would otherwise be. Is there now excess demand or excess supply of workers? JUSTIFY your answer!

By bargaining for higher wages, unions will likely reduce the quantity of labor demanded by employers unless.

Which of the following is likely to increase the supply of labour? a decrease in fringe benefits a relaxation of restrictions on immigration an increase in the value placed on leisure a decrease in the population