Exam 12: The Supply of and Demand for Productive Resources

Suppose a U.S. automotive manufacturer was considering moving to Mexico to take advantage of the lower wage rates for unskilled Mexican labor. The typical Mexican worker could produce 20 cars per day, while the firm's typical U.S. worker can produce 50 cars per day. If the firm currently pays its U.S. workers an hourly wage of $25, economic theory suggests that the firm should

The demand for a factor of production depends largely on the

If there is a shortage of nurses, it is expected that

If the demand for a consumer good increases, the demand for resources required to make the good will

There is an Italian soccer player who makes more than $10 million a year. Why?

An unexpected increase in the demand for accountants will lead to

Assume that the demand for paper products increases. Then, we expect that the

Which of the following labor resources will likely have the most elastic supply schedule in the short run?

Which of the following is most likely to result from an increase in the demand for computer technicians?

Consider the labor market for nurses, which initially is in equilibrium. Suppose the output price for nursing services increases. Holding all else equal, what effect will this have on the labor market for nurses?

Which of the following scenarios would serve to decrease the demand for unskilled labor in our country?

Firms should hire additional units of a resource as long as the

A new government study reveals that daily consumption of peanut butter increases life expectancy by 10 years. What will this do to the input markets for peanuts and peanut butter factory workers? Assuming bologna is a substitute for peanut butter, what will happen in the market for bologna factory workers?

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