Question

Question 13 1pts Suppose that the labor market for low skill jobs in California is close to a competitive labor market. Many of low skill labor are from Mexico and Central America. Some politicians are considering restricting immigration from these countries. This would cause a decrease in the supply of labor leading to an increase in the equilibrium wage and an increase in the equilibrium quantity of labor employed. a decrease in the supply of labor leading to an increase in the equilibrium wage and a decrease in the equilibrium quantity of labor employed. a decrease in the demand of labor leading to a fall in the equilibrium wage and a decrease in the quantity of labor employed. the demand for labor to decrease far more than the supply of labor so that the equilibrium wage rate would decrease. Question 17 1 pts Which of the following correctly describes a representative labor market? The wage adjusts to balance the supply and demand for labor. The wage equals the value of the marginal product of labor. An increase in the supply of labor increases the equilibrium wage. Both a and b are correct. Question 18 1pts Suppose that technological progress increases the productivity of teachers. Which of the following accurately describes the labor market for teachers after the technological change? Wages will rise and quantity of teachers employed will fal. Wages will rise and the quantity of teachers employed will rise. Wages will fall and the quantity of teachers employed will fall. Wages will fall and the quantity of teachers employed will rise. Question 19 1 pts Wage Wa W Dz D Quantity of Labor When the relevant labor demand curve is D1 and the labor market is in equilibrium, (i) the value of the marginal product of labor to firms is less than W1 (ii) the opportunity cost of leisure to workers is greater than W1. (ii the wage is W1 Only (i) and (ii) are correct. Only (i) and (ii) are correct. Only (i) and (iii) are correct. All , (ii) and (ii) are correct Question 25 1pts i Americans have been experiencing the greatest increase in income inequality among rich nations: (i Health and social problems are less serious in the U.S. among OECD members: () True, (ii) True (i) True, (ii) False ()False, (i) True ()False, (ii) False

Answer 1

13) After the restriction of immigration from Mexico and Central America, the supply of labor and so the quantity of labor decrease in California. It helps to raise the wage in California. The second option is correct.

17) In labor market wage adjust to make supply and demand equation. In equilibrium W=P*MPL=VMPL. The fourth option is correct.

18) After technological progress, teachers become more productive. Now, less number of the teacher can achieve the target. So the demand for teacher will be decreased. It lowers the wage and quantity of teacher. The third option is correct.

19) In the labor market when supply is S and demand is D1, the equilibrium wage is W1. As we know in equilibrium W=P*MPL=VMPL. The opportunity cost of leisure is greater than W1 as more labor diminish productivity. The third option is correct.