Chapter 4 Microeconomics

Which of the following will not result in a leftward shift of the market demand curve for labor? A. a decrease in labor productivity B. a decrease in demand for the firm's product C. an increase in the wage rate D. a decrease in the firm's product price

an increase in the wage rate

If the demand for software engineers slower than does supply, then wages of software engineers will ___.

increases; fall

Many economists believe that the trend toward greater wage inequality across the U.S. economy was primarily caused by _.

new technologies

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 _.

will increase

Which of the following will not result in a rightward shift of the market supply curve for labor? A. a decrease in non-wage income B. an increase in the working-age population C. an increase in labor productivity D. an increase in immigration

an increase in labor productivity

If a new technology is a substitute for low-skilled labor, as that new technology becomes widely available, the curve for low-skilled labor will shift to the ____.

demand; left

In contrast to goods and services markets, are rare in labor markets, because rules that prevent people from earning income are not politically popular.

price ceilings

The labor curve(s) will shift __ if there is an increase in productivity or an increase in the demand for the final product.

demand; right

Steel mill wage costs increase by 18 percent over a year. What is the likely economic effect on the market for steel?

There is an increase in the cost of producing steel, which shifts the supply curve of steel to the left, thereby increasing the price of steel.

Improvements in the productivity of labor will tend to:

increase wages.

On April 1, 2009, in the middle of a recession, the government of the province of Ontario, Canada increased the provincial minimum wage from $8.75 to $9.50. What will the likely effect of this policy be?

Both the leftward shift in the labor demand curve and the higher minimum wage will lead to an increase in the unemployment rate.

Which of the following results in a rightward shift of the market demand curve for labor?

an increase in demand for the firm's product

Other things being equal, a _ supply of workers tends to ___ real wages.

larger; decrease

The "law of supply" functions in labor markets; that is, a higher ___ for labor leads to a higher quantity of labor supplied.

price

Since Baltimore passed the first __ in 1994, several dozen cities enacted similar laws in the late 1990s and into the 2000s.

living wage law

If a new technology is a complement for high-skilled labor, as that new technology becomes more widely available, the ___ curve for high-skilled labor will shift to the ___.

demand; right