Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN: 9781285165875
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Chapter 18, Problem 6QCMC
To determine
Theeffect of reducing stock of capital on factor marker.
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You are given a scenario where this a change in a factor of production or a change in demand for an item. You need to explain how this would change demand for labor.
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Principles of Economics, 7th Edition (MindTap Course List)
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- You are given a scenario where this a change in a factor of production or a change in demand for an item. You need to explain in sentence form how this would change demand for labor. You own a sports equipment manufacturing firm. You were just informed rent at your warehouse space would double.arrow_forwardSuppose that the market for labor is initially in equilibrium. An increase in the price of output will cause the equilibrium wage a. and the equilibrium quantity of labor to fall. b. and the equilibrium quantity of labor to rise. c. to rise and the equilibrium quantity of labor to fall. d. to fall and the equilibrium quantity of labor to rise.arrow_forwardwheat is the main input in the production of flour. all else equal, if the price of wheat decreases, what would we expect?arrow_forward
- Economics: Labor Economics Question: 1 If unskilled labor and robotics are substitutes in production a decrease in the price of robotics is predicted to a. decrease the demand for unskilled labor if the scale effect outweighs the substitution effect. b. decrease the demand for unskilled labor if the substitution effect outweighs the scale effect. c. unambiguously increase the demand for unskilled labor. d. unambiguously decrease the demand for unskilled labor. Question: 2 Assuming capital is fixed in the short run and variable in the long run what would likely happen to wages in the short and long run following a wave of immigration? a. a large decrease in the short run, followed by a smaller decrease in the long run b. a small decrease in the short run followed by a larger decrease in the long run c. an increase in the short run followed by a large decrease in the long run d. a decrease in the short run followed by an increase in the long run Question: 3 Which of the following…arrow_forwardAn increase in the price of the firm's output leads to a movement upward along the demand for labor curve. b. rightward shift of the demand for labor curve. movement downward along the demand for labor curve. d. leftward shift of the demand for labor curve.arrow_forwardWhich of the following causes a rightward shift in the demand for labor in the market for cars? a. The price of motorbike (a substitute good) increases. b. The price of car increases. Car manufactures purchase and install labor augmenting car manufacturing equipment. All of the above C. d.arrow_forward
- You publish a magazine for calculator collectors. To produce and distribute this magazine, you use a number of inputs: • computers labor . раper • postage • staplers What is the impact on the market, if the price of labor goes down ? Choose one: O A. The demand for the magazine shifts to the right, and the supply curve shifts to the left. The equilibrium price rises, but there is an unknown change in the equilibrium quantity. O B. The demand for the magazine does not change, and the supply curve shifts to the left. The equilibrium price rises, but the equilibrium quantity falls. O C. The demand for the magazine does not change, and the supply curve shifts to the right. The equilibrium price falls, but the equilibrium quantity rises. O D. The demand for the magazine shifts to the left, and the supply curve shifts to the right. The equilibrium price falls, but there is an unknown change in the equilibrium quantity.arrow_forwardYou are given a scenario where this a change in a factor of production or a change in demand for an item. You need to explain in sentence form how this would change the demand for labor. See the example and model your answers after how the example is written.arrow_forwardWhat will happen to the demand curve if : a. The demand for the product by labor declines b. The prices of subtitute inputs fall c. The productivity of labor increases d. The wage rate declinesarrow_forward
- Consider this graph represents McDonald's demand for labor. Choose the 2 scenarios that would shift the demand for labor from D1 to D3. Group of answer choices McDonalds buys a machine that can do the work of 5 human employees. (Long Run) Breaking News: All McDonald's food contains traces of rat poison. People decide to eat less. The Travis Scott meal is heavily promoted on social media increasing people's desire to eat at McDonalds more often. McDonalds buys a machine that can do the work of 5 human employees. (Short Run)arrow_forwardMatch the following with the correct answer. Answers can be used more than once. v In the labor market, what causes a movement along the A. A change in anything that affects the demand of labor demand curve? B. A change in anything that affects the supply of labor v In the labor market, what causes a shift in the demand C. other input prices curve? D. A change in anything that affects supply of labor other than price v In the labor market, what causes a movement along the E. Changes in the wage rate (the price of labor). supply curve? F. A change in anything that affects demand for labor other than price v In the labor market, what causes a shift in the supply curve?arrow_forwardShow the effect of each of the following events (using a properly labeled supply/demand diagram) on the market for labor in the computer manufacturing industry.A. Congress buys personal computers for all U.S. college students. B. More college students major in engineering and computer science.C. Computer firms build new manufacturing plants and a new study shows declining job satisfaction in the computer manufacturing industry.arrow_forward
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