Micro Economics For Today
Micro Economics For Today
10th Edition
ISBN: 9781337613064
Author: Tucker, Irvin B.
Publisher: Cengage,
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Chapter 11, Problem 4SQ
To determine

The statement about economy.

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When economists say that the demand for labor is a derived demand, they mean that it is... A. dependent on government expenditures for public goods and services B. related to the demand for the product or service labor is producing C. based on the desire of businesses to exploit labor by paying below equilibrium wage rates D. based on the assumption that workers are trying to maximize their money incomes.
For each of the following determine the impact on the demand or the supply of labor and the effect on the equilibrium wage and quantity of labor employed. a. An increase in the price of capital.                 b. A union is formed which uses collective bargaining to obtain higher wages for its members.                     c. The marginal productivity of workers rises.                       d. People desire leisure more than ever before (e.g. it is Christmas Day).              e. The wages offered in other labor markets requiring similar skills are now offering substantially higher wages.                      f. The fringe (non-monetary) benefits offered in this market have increased substantially.                 g. The government has just adopted an "open-door' immigration policy?
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.
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