Podcast
Questions and Answers
A change in the quantity of the product that the labor produces can:
A change in the quantity of the product that the labor produces can:
- Shift the demand curve for labor (correct)
- Increase wages
- Decrease the supply of labor
- Raise the quantity of financial capital
Improvements in the productivity of labor will tend to:
Improvements in the productivity of labor will tend to:
- Have no effect on wages
- Increase wages (correct)
- Require more labor
- Decrease wages
If the demand for software engineers ____ slower than does supply, wages of software engineers will ____.
If the demand for software engineers ____ slower than does supply, wages of software engineers will ____.
increases; fall
What will happen to the quantity demanded of financial capital at any given interest rate?
What will happen to the quantity demanded of financial capital at any given interest rate?
If labor demand is downward sloping and labor supply is upward sloping, then when labor demand rises faster than labor supply, it is expected that real wages ____.
If labor demand is downward sloping and labor supply is upward sloping, then when labor demand rises faster than labor supply, it is expected that real wages ____.
A price floor that makes it illegal for an employer to pay employees less than a certain hourly rate is known as:
A price floor that makes it illegal for an employer to pay employees less than a certain hourly rate is known as:
A straightforward example of a __________, often used for simplicity, is the interest rate.
A straightforward example of a __________, often used for simplicity, is the interest rate.
The supply curve of textbooks will shift to the left in response to:
The supply curve of textbooks will shift to the left in response to:
What will happen to the supply curve for the drug if a more efficient means of processing algae to produce an anticancer drug is discovered?
What will happen to the supply curve for the drug if a more efficient means of processing algae to produce an anticancer drug is discovered?
What will be the likely effect of the provincial minimum wage increase in Ontario in 2009?
What will be the likely effect of the provincial minimum wage increase in Ontario in 2009?
As the __________ substitute for low-skill labor becomes available, the demand curve for low-skill labor will shift to the left.
As the __________ substitute for low-skill labor becomes available, the demand curve for low-skill labor will shift to the left.
Which of the following results in a rightward shift of the market demand curve for labor?
Which of the following results in a rightward shift of the market demand curve for labor?
In contrast to goods and services markets, _____________ are rare in labor markets, because rules that prevent people from earning income are not politically popular.
In contrast to goods and services markets, _____________ are rare in labor markets, because rules that prevent people from earning income are not politically popular.
Other things being equal, a _______ supply of workers tends to ____ real wages.
Other things being equal, a _______ supply of workers tends to ____ real wages.
The labor ____________ curve(s) will shift _______________ if there is an increase in productivity or an increase in the demand for the final product.
The labor ____________ curve(s) will shift _______________ if there is an increase in productivity or an increase in the demand for the final product.
Laws that impose an upper limit on the interest rate that lenders can charge are known as:
Laws that impose an upper limit on the interest rate that lenders can charge are known as:
Many economists believe that the trend toward greater wage inequality across the U.S. economy was primarily caused by __________.
Many economists believe that the trend toward greater wage inequality across the U.S. economy was primarily caused by __________.
What is the likely economic effect on the market for steel if steel mill wage costs increase by 18 percent over a year?
What is the likely economic effect on the market for steel if steel mill wage costs increase by 18 percent over a year?
How do apple growers react to the news of medical research findings that suggest that eating apples leads to greater health benefits than were previously known?
How do apple growers react to the news of medical research findings that suggest that eating apples leads to greater health benefits than were previously known?
Whenever there is a shortage at a particular price, the quantity sold at that price will equal:
Whenever there is a shortage at a particular price, the quantity sold at that price will equal:
Study Notes
Labor Demand and Wages
- A change in product quantity produced by labor can shift the labor demand curve.
- Improved labor productivity tends to increase wages.
- If the supply of software engineers increases slower than demand, their wages will fall.
- A rise in labor demand that outpaces supply is expected to increase real wages.
Labor Market Dynamics
- The demand for financial capital shifts right with increased quantity demanded at given interest rates.
- Minimum wage laws create price floors that prevent employers from paying below certain hourly rates.
- An increase in demand for a firm’s products leads to a rightward shift in the labor demand curve.
Supply Curves and Market Responses
- The supply curve for textbooks shifts left if there’s a sharp increase in wood demand for home construction.
- Efficiency improvements in drug processing shift the drug supply curve rightward, lowering drug prices.
- An increased minimum wage alongside a leftward labor demand shift during a recession may raise unemployment rates.
Technological Impact on Labor
- Availability of technology as a substitute for low-skill labor causes a leftward shift in the low-skill labor demand curve.
- Larger worker supplies tend to decrease real wages.
Economic Principles
- Labor demand curves shift right with productivity increases or heightened final product demand.
- Price ceilings are rare in labor markets due to political unpopularity of income restrictions.
- Usury laws limit maximum interest rates that lenders can charge.
Wage Inequality and Market Effects
- Wage inequality in the U.S. is primarily attributed to new technologies.
- Rising wage costs in industries like steel lead to left-shifting supply curves, increasing prices of the products.
- Apple growers respond positively to health research regarding apples by increasing the quantity supplied.
Shortages in the Market
- In cases of shortage at a certain price, the quantity sold will equal the quantity supplied at that price.
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Description
This quiz focuses on key concepts from Chapter 5 of your economics course. It covers the relationship between labor demand, productivity, and wage changes. Test your understanding of how these factors interact in the labor market.
