CHAPTER 18THE MARKETS FOR THE FACTORS OF PRODUCTION4152.Give two examples of events that could shift thedemand for labor.3.Give two examples of events that could shift the supplyof labor.4.Explain how the wage can adjust to balance the supplyand demand for labor while simultaneously equalingthe value of the marginal product of labor.5.If the population of the United States suddenly grewbecause of a large immigration, what would happen towages? What would happen to the rents earned by theowners of land and capital?1. Suppose that the president proposes a new law aimed atreducing heath care costs: All Americans are to berequired to eat one apple daily.a.How would this apple-a-day law affect the demandand equilibrium price of apples?b.How would the law affect the marginal productand the value of the marginal product of applepickers?c.How would the law affect the demand andequilibrium wage for apple pickers?
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This note was uploaded on 07/30/2010 for the course ECON 120 taught by Professor Abijian during the Spring '10 term at Mesa CC.