Exam 19: Markets for Factors of Production

The Small Bookshop hires teenagers who love books.How does each of the following changes affect the supply and demand for workers for the Small Bookshop? a∙The Big Bookshop, a chain bookstore down the street, offers a higher wage rate. b∙More people buy books from Amazon.com. c∙People watch more television and read fewer books. d∙More older people who love to read move into the area where the Small Bookshop is located.

Which of the following methods is used by unions to increase the demand for the labor of its members?

An individual's labor supply curve eventually bends backward because at a high enough wage rate,

The proposition that the price of a resource is expected to rise at a rate equal to the interest rate is called the

Considered as a factor of production, coal is a

In order to spend more time with her children, a young mother decides to work fewer hours as her pay increases.What does her labor supply curve look like?

If the wage rate increases, then

The supply of labor curve for an individual is

If the price of capital falls, in the long run under what circumstance could the demand for labor increase?

A firm's demand for labor curve shifts when there is a change in I∙the supply of labor. Ii∙population Iii∙the equilibrium wage rate.

If the wage rate increases, a firm's demand for labor curve

How does a firm's demand for labor change if the price of the firm's product increases? Relate your answer to the value of marginal product.

If a firm finds itself at the point where the value of marginal product of labor is greater than its wage rate, then the firm

The table below has the marginal product schedule for a firm.If the price of the product is $2 a unit, complete the table.If the wage rate is $8 an hour, how many workers does the firm hire?

If the price of the firm's output increases, the demand for labor curve

As the wage rate rises, the quantity of labor an individual supplies

The figure above shows a labor market in which a union has formed -Labor unions' support for increasing the minimum wage represents an attempt to shift the

What happens to the supply of labor when more people pursue education and training? Be sure to discuss what happens to both the supply of low-skilled and high-skilled labor.

A rise in the minimum wage increases the demand for union labor because this policy change

If the wage rate exceeds the value of marginal product, a firm