Business Finance - Economics Chapter 9 &10 Assignments Principles of Economics
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Ch10.docxCh 10-Labor Market
Name
ID
Define the below key terms
Marginal revenue product (MRP)
Demand curve for labor
Derived demand
Supply curve of labor
Human capital
Collective bargaining
Monopsony
Marginal factor cost
Answer the below questions;
Q. Explain how the demand for and supply of labor are determined.
Answer
Q. Describe how the equilibrium wage rate is determined.
Answer
Q. Analyze the impact of unions on wages.
Answer
Q. Discuss the characteristics of a monopsony and how a monopolist determines its wage rate.
Answer
Q. Compute’s Marginal Product and Marginal Revenue Product of Labor
|
Points |
Labor input(workers per day) |
Total output (unit per day) |
Marginal Product (unit per day) |
Product Price |
Marginal Revenue Product = MP*Price |
|
|
0 |
0 |
|
$70 |
|
|
A |
1 |
5 |
|
$70 |
|
|
B |
2 |
9 |
|
$70 |
|
|
C |
3 |
12 |
|
$70 |
|
|
D |
4 |
14 |
|
$70 |
|
|
E |
5 |
15 |
|
$70 |
|
Q. A decrease in the supply curve for labor in a market will result in a(n)blank
--------------in the equilibrium wage rate and a(n)blank
--------------in the number of workers hired in that labor market
Q. Explain about National Industrial Recovery Act (NIRA).
Answer
Q. Explain the Impact of Unions on the Demand for Labor.
Answer-
Q. Explain the Impact of Unions on the Supply of Labor
Answer
Q. Explain the Impact of Union Collective Bargaining on Wages
