Exam 16: The Markets for Labor, Capital, and Land

Exhibit 16-1 Several congressmen and senators have been greatly concerned about the fairness of salaries in the marketplace.They are contemplating enacting a law that would fix the wage rate at W_A.Their aides,who were all excellent economics students,have returned with the results of an investigation into the matter,as portrayed below. Refer to Exhibit 16-1.If a wage rate of W_A for teachers were imposed by the government on schools,the expected result would be:

An increase in the price of a resource would cause:

Exhibit 16-1 Several congressmen and senators have been greatly concerned about the fairness of salaries in the marketplace.They are contemplating enacting a law that would fix the wage rate at W_A.Their aides,who were all excellent economics students,have returned with the results of an investigation into the matter,as portrayed below. Refer to Exhibit 16-1.If the law was to impose a wage rate of W_A on the K-12 teachers market:

Other things being equal,an increase in the labor force resulting from increased immigration tends to:

Which landmark legislation protected the right of workers to organize and bargain collectively?

For an individual's supply curve of labor to be upward sloping:

Other things being equal,a decrease in the workplace amenities,such as decreased health care and less generous vacation options,would tend to shift the labor supply curve to the ____,thereby causing the market wages to ____.

Other things being equal,an increase in labor productivity will shift the labor supply curve to the right.

When wages increase,the income effect

If there is both a decrease in immigration and an increase in workers' non-wage incomes,

Which of the following will not result in a leftward shift of the market demand curve for labor?

The labor ____ curve(s)will shift if there is a change in productivity or a change in the demand for the final product.

If the demand for opera singers increases faster than the supply,wages will rise.

A payment for a resource above its opportunity cost is known as:

Which of the following is the best example of an investment in human capital?

The market supply curve for labor:

The short-run supply of land at a specific location is:

Exhibit 16-2 The following lists possible capital investments that a business might pursue. Refer to Exhibit 16-2.If the interest rate is 5 percent,which projects would the business not invest in?

The demand curve for loanable funds is downward sloping because:

If the demand for labor increased but more slowly than the supply