Question 1

The labor supply curve shifts when
A)employers need to hire more people.
B)employers develop new technology.
C)workers change the number of hours that they want to work at any given wage.
D)workers become more productive.

Accepted Answer

The labor supply curve shifts when workers change the number of hours that they want to work at any given wage. This can happen for various reasons such as changes in preferences, lifestyle considerations, family responsibilities, or availability of alternative employment opportunities. Conversely, the other options mentioned in the question may affect the demand for labor or the productivity of workers, but do not directly impact the labor supply curve.

Question 2

When the wages paid to government economists increase, the labor supply curve for academic economists
A)shifts to the left.
B)shifts to the right.
C)will become backward-sloping.
D)will not change.

Accepted Answer

An increase in wages for government economists will make this occupation relatively more attractive, causing some academic economists to leave academia in favor of government jobs. This decrease in the number of academic economists available for employment will shift the labor supply curve for academic economists to the left.

Question 3

Which of the following would shift a market labor supply curve to the left?
A)a decrease in the price of output
B)an increase in the price of output
C)a labor-augmenting technological change
D)better employment opportunities in a closely-related job

Accepted Answer

Better employment opportunities in a closely-related job would cause individuals to leave the current labor market, decreasing the number of workers available and shifting the labor supply curve to the left.

Question 4

What happens to labor supply in the pear-picking market when the wage paid to apple pickers increases?
A)The labor supply will stay unchanged until the wages paid to pear pickers change.
B)The labor supply will decrease.
C)The labor supply will increase.
D)The labor supply may fall or rise, depending on the price of pears.

Accepted Answer

If the wage paid to apple pickers increases, then fewer people will be willing to work in the pear-picking market because they can earn a higher wage in the apple-picking market. Therefore, the labor supply in the pear-picking market will decrease.

Question 5

What happens to the labor supply curves in both countries when Mexican workers leave Mexico and move to the United States?
A)Labor supply decreases in Mexico and decreases in the United States.
B)Labor supply increases in the United States and increases in Mexico.
C)Labor supply increases in the United States and decreases in Mexico.
D)Labor supply increases in Mexico and decreases in United States.

Accepted Answer

When Mexican workers leave Mexico and move to the United States, the labor supply curve in the United States increases as there are more workers available in the labor market. On the other hand, the labor supply curve in Mexico decreases as there are now fewer workers available in the labor market.

Question 6

The labor supply curve is fundamentally a representation of the trade-off people face between which of the following?
A)inflation and unemployment
B)prosperity and wages
C)time and leisure
D)labor and leisure

Accepted Answer

The labor supply curve represents the trade-off people face between providing labor and sacrificing leisure time. As the wage rate offered for work increases, individuals may be willing to work more hours and sacrifice leisure time in order to earn more income. Conversely, if the wage rate is low, individuals may choose to work fewer hours and enjoy more leisure time.

Question 7

Which of the following could increase the labor-supply curve for computer-repair technicians?
A)an increase in the wages paid to computer-repair technicians
B)an increase in immigration
C)a change in the work preferences of men, with more of them preferring to be stay-at-home fathers
D)an increase in the wages paid to television-repair technicians

Accepted Answer

An increase in immigration could increase the labor supply of computer-repair technicians as more people with the necessary skills and expertise will be available in the market.

Question 8

Which of the following could increase the supply of labor in the market for cranberry pickers?
(i)a change in the preferences of women toward full-time work
(ii)an increase in the output price
(iii)an increase in the wages paid to apple pickers
(iv)a decrease in the wages paid to apple pickers
A)(ii) only
B)(i), (ii), and (iv) only
C)(i) and (iv) only
D)(ii) and (iii) only

Accepted Answer

A change in preferences of women toward full-time work could increase the labor supply as more individuals are willing to work. A decrease in wages for apple pickers might make cranberry picking more attractive, increasing its labor supply.

Question 9

Which of the following events would shift a labor supply curve?
(i)immigration of high-skilled workers
(ii)immigration of low-skilled workers
(iii)changes in the number of women willing to work full time
A)(i) and (iii) only
B)(ii) and (iii) only
C)(iii) only
D)(i), (ii), and (iii)

Accepted Answer

All three events can shift the labor supply curve as they affect the number of workers available in the labor market.

Question 10

Which of the following could decrease the labor-supply curve for teachers?
A)a decrease in the wages paid to teachers
B)an increase in immigration
C)a change in the work preferences of men, with more of them preferring to be stay-at-home fathers
D)any factor that would decrease the labor-demand curve

Accepted Answer

If more men prefer to be stay-at-home fathers, then the labor supply of teachers (which is predominantly female) would decrease.

Question 11

If Sharnae's individual labor supply curve is backward sloping, then Sharnae responds to an increase in her
A)wage by working fewer hours per week.
B)opportunity cost of leisure by taking more hours of leisure per week.
C)wage by working more hours per week.
D)Both a and b are correct.

Accepted Answer

The answer of If Sharnae's individual labor supply curve is...

Question 12

Which of the following would not shift a market labor supply curve to the right?
A)a decrease in the wage paid to workers in a competing market
B)labor-augmenting technology
C)a change in worker tastes so that workers want to retire later
D)an increase in immigration

Accepted Answer

The answer of Which of the following would not shift...

Question 13

Immigration is an important
A)explanation for the failure of firms to operate on their labor-demand curves.
B)explanation for the failure of firms to operate on their output-supply curves.
C)source of shifts in labor demand.
D)source of shifts in labor supply.

Accepted Answer

Immigration is a source of shifts in labor supply, as it increases the number of workers available in a particular market. This can affect the wage rate and other labor market outcomes.

Question 14

Suppose that the wage paid to workers who detassel corn rises. What happens in the market for workers who weed soybean fields, given that workers who detassel corn can easily work weeding soybean fields?
A)The demand curve for soybean workers increases.
B)The demand curve for soybean workers decreases.
C)The supply curve for soybean workers increases.
D)The supply curve for soybean workers decreases.

Accepted Answer

When the wage for de-tasseling corn increases, workers may shift from weeding soybean fields to de-tasseling corn due to the higher pay, reducing the supply of workers available for soybean weeding.

Question 15

To say that a firm is competitive in the labor market is to say that the firm
A)has little or no control over the number of workers it hires.
B)has little or no control over the wage it pays its workers.
C)is aggressive in pursuing the most skilled workers in the labor market.
D)is aggressive in trying to keep its workers' wages low.

Accepted Answer

A firm being competitive in the labor market implies it operates under the conditions of a competitive market, where individual firms do not have the power to set wages but rather accept the market wage determined by the supply and demand for labor.

Question 16

Which of the following would not shift a market labor supply curve to the left?
A)an increase in the wage paid to workers in a competing market
B)labor-saving technology
C)a change in worker tastes so that workers want to retire earlier
D)an increase in immigration

Accepted Answer

The answer of Which of the following would not shift...

Question 17

Which of the following would shift a market labor supply curve to the left?
A)an increase in the wage paid to workers in a competing market
B)labor-saving technology
C)a change in worker tastes so that workers want to retire later
D)an increase in immigration

Accepted Answer

The answer of Which of the following would shift a...

Question 18

Which of the following events would lead to an increase in the supply of labor?
A)The price of a firm's product increases.
B)A country experiences an increase in immigrant labor.
C)The development of a new labor-augmenting technology.
D)All of the above are correct.

Accepted Answer

An increase in immigrant labor would lead to an increase in the supply of labor because there are now more people available to work. A higher supply of labor would increase competition among workers, which could potentially lower wages. The other choices are incorrect because an increase in the price of a firm's product or the development of a new labor-augmenting technology would not necessarily lead to an increase in the supply of labor.

Question 19

Immigration of workers into the United States is often an important source of
A)increases in the demand for labor in the United States.
B)decreases in the demand for labor in the United States.
C)increases in the supply of labor in the United States.
D)decreases in the supply of labor in the United States.

Accepted Answer

Immigration of workers into the United States increases the supply of labor in the country. This can lead to higher competition for jobs, possibly resulting in lower wages. However, it can also lead to an increase in productivity and economic growth if these immigrants possess skills and knowledge not readily available in the domestic workforce.

Question 20

Which of the following events would shift the labor supply curve?
A)changes in the number of women willing to work
B)immigration of workers
C)changing attitudes towards work
D)All of the above are correct.

Accepted Answer

All of the above events can impact the number of workers available in the labor market and their willingness to work, thus shifting the labor supply curve. For example, an increase in the number of women willing to work would shift the curve to the right, while a decrease would shift it to the left. Immigration of workers can also increase the labor supply in a country, shifting the curve to the right. Changing attitudes towards work can also impact the number of workers willing to work and the hours they are willing to work, thus shifting the labor supply curve.

Quiz 18: The Markets for the Factors of Production

The labor supply curve shifts when

When the wages paid to government economists increase, the labor supply curve for academic economists

Which of the following would shift a market labor supply curve to the left?

What happens to labor supply in the pear-picking market when the wage paid to apple pickers increases?

What happens to the labor supply curves in both countries when Mexican workers leave Mexico and move to the United States?

The labor supply curve is fundamentally a representation of the trade-off people face between which of the following?

Which of the following could increase the labor-supply curve for computer-repair technicians?

Which of the following could increase the supply of labor in the market for cranberry pickers? (i) a change in the preferences of women toward full-time work (ii) an increase in the output price (iii) an increase in the wages paid to apple pickers (iv) a decrease in the wages paid to apple pickers

Which of the following events would shift a labor supply curve? (i) immigration of high-skilled workers (ii) immigration of low-skilled workers (iii) changes in the number of women willing to work full time

Which of the following could decrease the labor-supply curve for teachers?

If Sharnae's individual labor supply curve is backward sloping, then Sharnae responds to an increase in her

Which of the following would not shift a market labor supply curve to the right?

Immigration is an important

Suppose that the wage paid to workers who detassel corn rises. What happens in the market for workers who weed soybean fields, given that workers who detassel corn can easily work weeding soybean fields?

To say that a firm is competitive in the labor market is to say that the firm

Which of the following would not shift a market labor supply curve to the left?

Which of the following would shift a market labor supply curve to the left?

Which of the following events would lead to an increase in the supply of labor?

Immigration of workers into the United States is often an important source of

Which of the following events would shift the labor supply curve?