Contemporary Labor Economics
11th Edition
ISBN: 9781259290602
Author: Campbell R. McConnell, Stanley L. Brue, David Macpherson
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Question
Chapter 3, Problem 1QS
To determine
The major components of the
Expert Solution & Answer
Explanation of Solution
The aggregate labor supply is a
- Population size: The size of the total population and the size of working population determine the labor supply in a country.
- Quality of labor: The quality of labor is an important component of the labor supply. It includes skills, positive attitude, hard work, leadership quality, and so forth.
- Real wage: Changes in real wage would have more impact on the attitude of workers in the long run. An increase in real wage would encourage workers to work more.
- Duration of working days: It includes the length of working hours in a week.
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
what are the factors that will lead to an increase in demand for workers in an economy?
What accounts for the backward bending Labour supply curve?
Describe the two possible effects that an increase in
the wage rate can have on labor supply. Which effect
do you expect to dominate under normal
circumstances?
Knowledge Booster
Similar questions
- The government recently imposed a number of regulations on companies that will make it more expensive for companies to hire workers. What consequence will this have on the labor market?arrow_forwardYou are given a scenario where this a change in a factor of production or a change in demand for an item. You need to explain in sentence form how this would change the demand for labor. See the example and model your answers after how the example is written.arrow_forwardBriefly explain the marginal productivity theory of wages.arrow_forward
- ps OS Consider two hypothetical states that operate under different laws governing labor unions. The following graph shows the labor market in a state in the West. Initially, the market-clearing wage in this state is $8.00 per hour. Now, suppose that the General Assembly in this western state passes a law that makes it easier for workers to join a union. Through collective bargaining, the union negotiates an hourly wage of $10.00. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. WAGE (Dollars per hour) 16 14 12 10 1.00 8 O 2 10 Supply Demand 0 200 400 600 800 1000 1200 1400 1800 LABOR (Thousands of workers) At the union wage, Graph Input Tool Market for Labor Enter $10.00 into the box labeled Wage on the previous graph. Hint: Be sure to pay attention to the units used on the graph. union workers will be employed. Wage (Dollars per hour) Labor Demanded (Thousands of workers) 2.00 1,400 Labor Supplied…arrow_forwardExplain why the marginal product of labour equals the competitive wage when there is equilibrium in a single competitive labour market?arrow_forwardMake use of graph (one graph for each question) to describe briefly what the influence of each of the following would be on supply OR demand of labour: 1. An increase in students studying full time 2. An equal increase in the price and productivity of labour 3. A decline in the price of a substitute for a particular type of labourarrow_forward
- Equilibrium in the labour market depends on the demand for labour and the supply of labour. Graphically demonstrate how the supply of labour in the U.S. is affected by the increase in the labour force resulting from Mexican immigrants. What other factors that can cause the labour supply curve to shift?arrow_forwardFactors Influencing Labor Supply and Demand Discuss labor supply and demand. Address the following in the post: Besides training and education, what are some of the things that have a signficant impact on the supply and demand of labor? Explain why you believe they have such an impact. What other factors can directly influence the labor market?arrow_forwardExplain labour demand in short with a diagram.arrow_forward
- What is equilibrium in the labour market? a. Graphically demonstrate how the supply of labour in the U.S. is affected by the increase in the labour force resulting from Mexican immigrants. b.What other factors that can cause the labour supply curve to shift?arrow_forwardYou are given a scenario where this a change in a factor of production or a change in demand for an item. You need to explain in sentence form how this would change demand for labor. You develop a popular video game and continue to develop new versions to keep people interested in the game.arrow_forwardDiscuss labor supply and demand. Besides training and education, what are some of the things that have a significant impact on the supply and demand of labor? Explain why you believe they have such an impact. What other factors can directly influence the labor market?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning