The next two questions are about the labor market for upholsterers, who are people who do custom upholstery (the fabric on furniture). A new type of pre-sewn fabric piece reduces the amount of work that an upholsterer needs to do on each piece of furniture, increasing how much work each individual upholsterer can do for the same amount of effort. This is describing a change in some part of the labor demand or labor supply curves. Which part? a. Group of answer choices b. Price of the good (P) c. Marginal productivity of labor (MPL) d. The labor/leisure tradeoff in the supply curve e. The minimum wage 2. Assume that the new pre-sewn fabric ends up making the wage of upholsterers go up. You also observe that very few tailors, which is a similarly difficult job, decide to switch from being tailors to being upholsterers in response to the wage increase. What is this most likely an example of? a. Group of answer choices b. Taste-based discrimination c. Compensating differentials d. Specific human capital e. Statistical discrimination f. General human capital
The next two questions are about the labor market for upholsterers, who are people who do custom upholstery (the fabric on furniture). A new type of pre-sewn fabric piece reduces the amount of work that an upholsterer needs to do on each piece of furniture, increasing how much work each individual upholsterer can do for the same amount of effort. This is describing a change in some part of the labor demand or labor supply curves. Which part? a. Group of answer choices b. Price of the good (P) c. Marginal productivity of labor (MPL) d. The labor/leisure tradeoff in the supply curve e. The minimum wage 2. Assume that the new pre-sewn fabric ends up making the wage of upholsterers go up. You also observe that very few tailors, which is a similarly difficult job, decide to switch from being tailors to being upholsterers in response to the wage increase. What is this most likely an example of? a. Group of answer choices b. Taste-based discrimination c. Compensating differentials d. Specific human capital e. Statistical discrimination f. General human capital
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
1. The next two questions are about the labor market for upholsterers, who are people who do custom upholstery (the fabric on furniture). A new type of pre-sewn fabric piece reduces the amount of work that an upholsterer needs to do on each piece of furniture, increasing how much work each individual upholsterer can do for the same amount of effort.
This is describing a change in some part of the labor demand or labor supply curves. Which part?
a. Group of answer choices
b. Price of the good (P)
c. Marginal productivity of labor (MPL)
d. The labor/leisure tradeoff in the supply curve
e. The minimum wage
2. Assume that the new pre-sewn fabric ends up making the wage of upholsterers go up.
You also observe that very few tailors, which is a similarly difficult job, decide to switch from being tailors to being upholsterers in response to the wage increase. What is this most likely an example of?
a. Group of answer choices
b. Taste-based discrimination
c. Compensating differentials
d. Specific human capital
e. Statistical discrimination
f. General human capital
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education