The supply-of-labor curve S slopes upward in graph (a) because:

a. the law of diminishing marginal utility applies.

b. the law of diminishing returns applies.

c. workers can afford to “buy” more leisure when their wage rates rise.

d. higher wages are needed to attract workers away from other labor markets, household activities, and leisure.

Name some factors that can cause a shift in the supply curve in labor markets.

The nature of demand indicates that as the price of good increases:

A) suppliers wish to sell less.

B) more of it is desired.

C) more of it is produced.

D) buyers desire to purchase less of it.

If as the price of good X rises, the demand for Y increases, then X and Y are ______.

Complete the statement: the nature of demand indicates that as the price of a good increases:

Choose the correct option.

The ________ is where the quantity demanded and quantity supplied are equal at a certain price.

A) surplus

B) supply schedule

C) equilibrium

The ___________ is the only price where quantity demanded is equal to quantity supplied.

Whenever there is a shortage at a particular price, the quantity sold at that price will equal:
a. the quantity demanded at that price.
b. the quantity supplied at that price.
c. the quantity supplied minus the quantity demanded.
d. quantity demanded plus quantity supplied.

Explain why the general level of wages is high in the United States and other industrially advanced countries. What is the single most important factor underlying the long-run increase in average real-wage rates in the United States?

A delivery company is considering adding another vehicle to its delivery fleet; each vehicle is rented for $\$100$ per day. Assume that the additional vehicle would be capable of delivering 1,500 packages per day and that each package that is delivered brings in ten cents in revenue. Also assume that adding the delivery vehicle would not affect any other costs.

a. What is the MRP? What is the MRC? Should the firm add this delivery vehicle?
b. Now suppose that the cost of renting a vehicle doubles to $\$200$ per day. What are the MRP and MRC? Should the firm add a delivery vehicle under these circumstances? c. Next suppose that the cost of renting a vehicle falls back down to $\$100$ per day but, due to extremely congested freeways, an additional vehicle would only be able to deliver 750 packages per day. What are the MRP and MRC in this situation? Would adding a vehicle under these circumstances increase the firm’s profits?

Suppose that you own a 10-acre plot of land that you would like to rent out to wheat farmers. For them, bringing in a harvest involves $30 per acre for seed,$80 per acre for fertilizer, and $70 per acre for equipment rentals and labor. With these inputs, the land will yield 40 bushels of wheat per acre. If the price at which wheat can be sold is$5 per bushel and if farmers want to earn a normal profit of $10 per acre, what is the most that any farmer would pay to rent your 10 acres? What if the price of wheat rose to$6 per bushel?

Workers are compensated by firms with “benefits” in addi- tion to wages and salaries. The most prominent benefit of- fered by many firms is health insurance. Suppose that in 2000, workers at one steel plant were paid $\$20$ per hour and in addition received health benefits at the rate of $\$4$ per hour. Also suppose that by 2010 workers at that plant were paid $\$21$ per hour but received $\$9$ in health insurance benefits.

a. By what percentage did total compensation (wages plus benefits) change at this plant from 2000 to 2010? What was the approximate average annual percentage change in total compensation?

b. By what percentage did wages change at this plant from 2000 to 2010? What was the approximate average annual percentage change in wages?

c. If workers value a dollar of health benefits as much as they value a dollar of wages, by what total percentage will they feel that their incomes have risen over this time period? What if they only consider wages when calculat- ing their incomes?

d. Is it possible for workers to feel as though their wages are stagnating even if total compensation is rising?

Describe Thomas Malthus’s theory of human reproduction. Does it make sense for some species—say, bacteria or rabbits? What do you think makes humans different?

Suppose that the current (first) generation consists of 1 million people, half of whom are women. If the total fertility rate is 1.3 and the only way people die is of old age, how big will the fourth generation (the great-grandchildren) be? How much smaller (in percentage terms) is each generation than the previous generation? How much smaller (in percentage terms) is the fourth generation than the first generation? Are you surprised by how quickly the population declines?