EBK PRINCIPLES OF MICROECONOMICS (SECON
2nd Edition
ISBN: 9780393616149
Author: Mateer
Publisher: W.W.NORTON+CO. (CC)
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Question
Chapter 15, Problem 1SP
(a)
To determine
Explain whether the wages in construction is higher or lower than the other jobs.
(b)
To determine
Explain whether the left- handed workers make more or less than right- handed workers.
(c)
To determine
Explain the effect of change in wage for both right – handed and left – handed over time.
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Students have asked these similar questions
Suppose Kara maximizes her profits by hiring workers to produce hand-made soaps. Her soaps sell for $1 each. How should Kara decide on how many workers she should hire?
a.Hire workers up to the point when the price of her soaps starts to fall from $1
b.Hire workers up to the point when the total product of all her workers is at its maximum
c.Hire up to the point when the wage rate equals to the value of the marginal product of the last worker hired
d.Hire up to the point when the marginal product of the last worker hired is equal to zero
Which of the following correctly explains the effect of a variable on the labor demand curve?
A. If human capital increases, then we will move up the labor demand curve.
B. If the price of the product increases, then the labor demand curve will shift to the left.
C. If the number of firms in the market increases, then the labor demand curve will shift to the right.
D. If the wage increases, then the labor demand curve will shift to the right.
How would each of the following likely affect
the real wage and employment of unskilled
workers on an automobile plant assembly
line?
a. Demand for the type of car made by the plant
increases.
b. A sharp increase in the price of gasoline
causes many commuters to switch to public
transportation.
c. Because of alternative opportunities, people
become less willing to do factory work.
d. The plant management introduces new
assembly-line methods
e. Robots are introduced to do most basic
assembly-line tasks.
Chapter 15 Solutions
EBK PRINCIPLES OF MICROECONOMICS (SECON
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- Suppose a firm finds itself in a situation where the marginal product of the last employee hired is 4 units per hour, and the marginal product of the last machinepurchased is 10 units per hour. If the wage is $20/hour and the hourly rental rate of a machine is $50, what should this firm do if it wants to be as productive aspossible?a. Lay off workers and use more machines.b. Hire workers and use less machines.c. Lay off workers and use less machines,d. Hire workers and use more machines.e. Nothing. This firm is already operating efficiently.arrow_forwardWhat are the three most important variables that cause the market supply curve for labour to shift? The supply curve for labour shifts with changes in A. the population, the wage rate and opportunities in other labour markets. B. the price of the product, demographics and opportunities in other labour markets. C. the population, demographics and opportunities in other labour markets. D. the population, the quantity of other inputs and opportunities in other labour markets E. immigration, minimum wage legislation and the wage rate.arrow_forwardb. Suppose that due to the opening of trade, the price of components falls by Δ PC/PC = –10%, and the price of R&D remains unchanged, ΔPR/PR = 0. Calculate the change in the wage of skilled and low-skilled labor. ΔWageHigh-skilled is __% ΔWageLow-skilled is __% c. What has happened to the relative wage of high-skilled/low-skilled labor? Does this match the predictions of the offshoring model in this chapter?arrow_forward
- 10. In the Heckscher-Ohlin framework, suppose that the autarkic wage in country A is WA $20 and the autarkic rental price of capital is rA $40. In country B (with monetary values expressed in $ for purposes of comparison), the autarkic wage is we = $15 and the autarkic rental price of capital is rg = $45. Also, suppose that good X is labor intensive and good Y is capital intensive. Then we can say that O the relative wages (w/r) will equalize, but not the absolute wages (expressed in the same currency) upon moving from autarky to free trade. country B has a comparative advantage in good X, the rental price of capital in country B will fall upon moving from autarky to free trade. O the absolute rental prices of capital (r), expressed in the same currency, will move closer together, but not equalize upon moving from autarky to free trade. the absolute wages (w), expressed in the same currency, will move further apart upon moving from autarky to free trade. O country A has a comparative…arrow_forwardWhen there is increase in the production, we normally increase the labour rather than the machinery. The more labour employed in the production process, there will be raise in the production, But continuous increase in the labour may lead to decrease in the production after certain point. Here comes the question. How many employees should be employed to get maximum production? Law of variable proportion answers the question of the employment of labour for optimum production? Explain the Law of Variable Proportions in detail?arrow_forwardWhile in school, Kiki spends 20 hours a week as a computer programmer for Microsoft and studies 30 hours a week. O A. Kiki is classifieds a pait-time worker, working 30 hours a week. O B. Kiki is classified as a full- time worker, working 50 hours a week. OC. Because Kiki is a student, she is classified as a full -time worker, working 20 hours a week at a paid job. D. Because Kiki is a student, she is not classified as working. O E. Kiki is classified as a part- time worker, working 20 hours a week. Click to select your answer. F7arrow_forward
- According to the Classical labor demand curve, if wages increase from $10 to $20. employees will want to work more employers will want to hire less people employees will want to work less employers will want to hire more people Question 10 (1 point) According to the Classical labor supply curve, what would happen when wages increase from $10 to $20? O employers will want to hire less people employers will want to hire more people O employees will want to work less employees will want to work morearrow_forwardWhich of the following statements is correct? a. The Mariel Boatlift study finds that the mass emigration of Cubans lowered the wage of unskilled native workers but not college-educated workers. b. Immigration from the former Soviet Union increased Israeli's population by 15% between 1950 and 1951 and the wages of high-skill natives. c. The May 1968 civil unrest in France lowered the education attainment of affected student cohorts but did not affect their future earnings. d. In a simple signaling model of education, human capital increases as a result of education. e. The repatriates from Algeria to France, due to Algeria's independence from France, increased France's labor force by 2%, but Hunt (1992) finds no significant impact on the French labor markets. Solve with in one hour for upvotearrow_forwardGive two examples of events that could shift thedemand for labor, and explain why they do soarrow_forward
- 1. At the given wage and price level, Blewitt’s should hire how many workers? Suppose that the price of blueberries increases to $18 per pound, but the wage rate remains at $80. On the previous graph, use the purple points (diamond symbol) to plot Blewitt's labor demand curve when the output price is $18 per pound. 2. Now Blewitt’s should hire how may workers when the output price is $18 per pound? 3. Assuming that all blueberry-producing firms have similar production schedules, an increase in the price of blueberries will cause the (supply of or demand for) blueberry pickers to (increase or decrease)? - Pick one for each blank 4. Suppose that wages increase to $110 due to an increased demand for workers in this market. Assuming that the price of blueberries remains at $18 per pound, Blewitt’s will now hire how many workers?arrow_forwardWhat does the term "family wage economy" mean based on Ruiz's chapter "The Flapper and the Chaperone"? (Only ONE answer is correct.) A. It means that the economic survival of the family was based on all of the wages multiple family members earned; it was not just based on the husband or father's job. B. It means that families worked together for the same company and employers gave the entire family one paycheck; people were not paid individually. C. It means that the federal and state governments only imposed income taxes on the head of the household, not on wives or dependent children. D. It means that families did not expect their teenage children to work; teenagers were expected to enjoy leisure time as often as possible.arrow_forwardAssume that Home and Foreign produce two goods, TVs and cars, and use the information below to answer the following questions: Home Country Foreign Country Wage tv = 12. MPLtv =2 Wage*tv = ? MPL*tv =? P*tv = 3 Ptv = ? Wage c = ? Wage*c = 6 MPL*c =1 P*c = ? MPLc =? Pc=4 What is the marginal product of labor for TVs and cars in the Home country? What is the no-trade relative price of TVs at Home? What is the marginal product of labor for TVs and cars in the Foreign country? What is the no-trade relative price of TVs in Foreign? Suppose the world relative price of TVs in the trade equilibrium is PTV /PC = 1. Which good will each country export? Briefly explain why.arrow_forward
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