3.2 An increase in the amount of capital in the economy will shift the demand for labor curve to the................ (right/left), leading to higher real wages and employment.
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3.2 An increase in the amount of capital in the economy will shift the
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- 9Question 7 According to the production model, what happens if there is an increase in total factor productivity and simultaneously a decrease in population? capital per worker does not change output per person decreases O capital per worker decreases output per person increases D Question 8 In the production model, an increase in the exogenous supply of labor, from L to L'.L'> L) causes which of the following in the labor market: O An shift to the left of the supply of labor curve and an upward movement along the demand for labor curve, so wages increase. A shift to the right in the demand for labor curve and an upward movement along the supply of labor curve, so wages increase. O Ashift to the right of the supply of labor curve and a downward movement along the demand for labor curve, so wages fall O Ashift to the left in the demand for labor curve for labor and a downward mavement along the supply of labor curve, so wages fall,If q = 4 lnL and the good is sold for $10 then if the wage rate is $5 the number of units of labor used would be............... and the wage bill (variable cost) will be ___________. a. 8, 40 b. 40, 8 c. 8, 8 d. 5, 50 e. none of the above. If the short run production function is given by q=(1/10)lnL and the price at which the good is sold is 100 then the demand for labor L is Group of answer choices a. 1/w b. 100/w c. 10/w d. unit elastic e. both c and d. f. None of the above
- E4.......2Nadira, the owner of Company ND is contemplating to keep her shop open after 4pm and until midnight. In order to do so, she would have to hire additional workers. She estimates that the additional workers would generate the following of total output (where each unit of output refers to 100 pages duplicated). Workers Hired 0 1 2 3 4 5 6 Total Product 0 12 22 30 36 40 42 Calculate the following if the price of each unit of output is RM10 and each worker hired must be paid RM40 per day: How many workers should Nadira hire? At which point did the law of diminishing returns occur?1. An individual derives utility from the consumption of a basket of goods, c and leisure time, given by U(c, l) = c²l(¹-a) where 0 < a < 1, is a constant; and must decide how to allocate her time between work, L and leisure to maximize her utility. The individual has a total of 24 hrs in a day (L + l = 24) and total consumption is constrained by her income; i.e., c = wL, where w the real per hour, is taken as given.
- Please don't use AI to solve, if you don't know ignore the problemConsider a company operating in a competitive market. The company sells units of output and receives a price of $20 per unit, and pays a daily market wage of $330 to each worker it employs. In the following table, complete the column for the value of the marginal product of labor (VMPL) at each quantity of workers. Labor Output Marginal Product of Labor Value of the Marginal Product of Labor (Number of workers) (Units of output) (Units of output) (Dollars) 0 0 20 1 20 19 2 39 18 3 57 15 4 72 12 5 84 On the following graph, use the blue points (circle symbol) to plot the firm's labor demand curve. Then, use the orange line (square symbols) to show the wage rate. (Note: If you cannot place the wage rate at the level you want, move the two end points individually.) Hint: Remember to plot each point halfway between the two integers. For example, when the number of workers increases from 0 to 1, the…True or False 1. If leisure and consumption are normal goods, the labor supply curve is more likely to be backward bending when the consumer views leisure and consumption to be more substitutable for one another.
- 2. Production function: Y=8(K^.33)(L^.66) What if there is skill biased technological change that makes capital more productive relative to labor such that alpha or the exponent on K rises to .5 and the exponent on L falls to .5 a) What is the new equilibrium real wage (assume no change in the labor supply equation & K = 1)? Labor Supply= (w/p)^2 b) What is the new equilibrium R/P (assume no change in the capital supply equation & L = 4)? Capital Supply= 1000(R/P)You run a factory that uses pottery wheels to make pots. You can hire anywhere between 1 and 3 skilled artisans (workers), and you can rent 1 or 2 pottery wheels (machines). Pots sell for $125 each. The total product of your factory is shown in the following table. Number of Machines (Capital, K) 1 Pottery wheels are 2 1 8 10 Number of Workers (Labor, L) 2 11 14 3 13 17 Suppose you rent one machine and hire one worker. You would be willing to pay $ to hire a 2nd worker. (Consider the value of the marginal product of labor.) Suppose you rent one machine and hire one worker. You would be willing to pay a rental rate of up to $ Suppose the wage is $350. If you have one pottery wheel, the number of workers you would want to hire is to acquire a 2nd machine. (Consider the value of the marginal product of capital.)4) If the marginal product of capital MPK > r, where r is the market rental rate for capital, the firm A. Should hire more capital until MPK = r. B. Should hire more labor until MPK = r. C. Should hire more labor until MPK = 0. D. Should fire more capital until MPK = r. %3D 5) Figure 1 below shows the dynamics of per-capita GDP for six countries in ratio scale from 1870 to 2010. From the Figure we learn that the level of per capita GDP A. Has almost doubled for the US from 1880 to 2020 B. Was higher in the U.S. compared to the UK in 1880 C. Was higher in China compared to Argentina in 2000. D. Increased by approximately 5 times in Japan from 1950 to 1970. Answer 64,000 U.S. 32,000 16,000 Argentina 8,000 U.K. 4,000 Japan 2,000 S. Africa China 1,000 1880 1900 1920 1940 1960 1980 2000 2020
