Microeconomics
21st Edition
ISBN: 9781259915727
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 25, Problem 7DQ
To determine
The shortage of skilled labor.
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Question 14
Human capital is H-e0.07*5), where S is the number of years of schooling. What is the ratio of the productivities of the persons having 9 and 12 years
of schooling, respectively. Hint: This will be the ratio of their wages in the competitive labor ratio of their wages in the competitive labor market.
O 0.81
0.95
O 1.03
O 1.54
Figure 9.2, U.S. Labor Market
Figure 9.2 represents the U.S. labor market. Assume that labor and capital are the only factors of
production. Also assume the initial supply schedule of labor is denoted by S, and consists entirely of
native U.S. workers. The demand schedule of labor is denoted by Do
Hourly Wage/S
O
O
18
Select one:
O
12
O
9
So
2
Consider Figure 9.2. Policies that permit Mexican workers to freely migrate to the United States would likely be resisted by:
S₁
a. U.S. capital owners
b. Native U.S. workers
3
Do
6
Quantity of
Labor
c. U.S. capital owners and native U.S. workers
d. Neither U.S. capital owners or native U.S. workers
Complete the following labor supply table for a firm hiring labor competitively: LO17.2
Show graphically the labor supply and marginal resource (labor) cost curves for this firm. Are the curves the same or different? If they are different, which one is higher?
Plot the labor demand data of review question 2 in Chapter 16 on the graph used in part a above. What are the equilibrium wage rate and level of employment?
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