Question

24. All else equal, which of the following will increase the demand for labor in a particular market?

a. An increase in the price of labor.

b. A decrease in the wage paid to another occupation for which these workers are qualified

c. A decrease in worker productivity

d. An improvement in the nonwage aspects of the job

e. An increase in the price of the product produced in that market.

25. Human capital theory predicts that the proportion of people attending college will decrease if:

a. the age at which retirement benefits are received is lowered to 59

b. the age at which retirement benefits are received is raised to 75

c. there is a relatively large population of new high school graduates

d. there is an increase in the demand for college educated workers

26. Which one of the following most closely approximates pure specific training?

a. Learning tax accounting

b. Learning a management information system that is unique to your firm

c. Majoring in management information systems at a major university

d. Learning a widely-used spreadsheet program that is also used at your firm

e. When Yoda makes Luke give him his space hot dog despite R2-D2’s reasonable objections.

Answer 1

Answer 24) option E)

Since the product sold in the market generates more revenue at the given wage of Labor , bcoz product price has increased, so firms demand more Labor at the given wage rate.

Answer 25) option a)

Since the age of getting retirement benefits gets lowered , so people will have incentive to enter into earmine rather than attending college to start earning early & then retiring early to start receiving the benefits

Option d is wrong, bcoz then more people will attend college

Answer 26) option b)

Bcoz management system is unique to the firm, so specific training is needed