chapter 4

increase wages

Improvements in the productivity of labor will tend to:

increase

In the market for labor. What happens to real wages when there is an increase in the demand curve?

There is an increase in the cost of producing steel, which shifts the supply curve of steel to the left, thereby increasing the price of steel.

Steel mill wage costs increase by 18 percent over a year. What is the likely economic effect on the market for steel?

price

The �law of supply� functions in labor markets; that is, a higher __________ for labor leads to a higher quantity of labor supplied.

shift to the right, decreasing the price of the drug

A more efficient means of processing algae to produce an anticancer drug is discovered. As a result, the supply curve for the drug will:

technology

As the __________ substitute for low-skill labor becomes available, the demand curve for low-skill labor will shift to the left.

the quantity demanded of financial capital at any given interest rate will shift to the right.

When consumers and businesses have greater confidence that they will be able to repay in the future, _______________________.

an increase in demand for the firm's product

Which of the following results in a rightward shift of the market demand curve for labor?

an increase in the wage rate

Which of the following will not result in a leftward shift of the market demand curve for labor?

an increase in labor productivity

Which of the following will not result in a rightward shift of the market supply curve for labor?