Principles of Economics- Mankiw (5th) 403

Principles of Economics- Mankiw (5th) 403 - CHAPTER 18 T H...

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CHAPTER 18 THE MARKETS FOR THE FACTORS OF PRODUCTION 415 2. Give two examples of events that could shift the demand for labor. 3. Give two examples of events that could shift the supply of labor. 4. Explain how the wage can adjust to balance the supply and demand for labor while simultaneously equaling the value of the marginal product of labor. 5. If the population of the United States suddenly grew because of a large immigration, what would happen to wages? What would happen to the rents earned by the owners of land and capital? 1. Suppose that the president proposes a new law aimed at reducing heath care costs: All Americans are to be required to eat one apple daily. a. How would this apple-a-day law affect the demand and equilibrium price of apples? b. How would the law affect the marginal product and the value of the marginal product of apple pickers? c. How would the law affect the demand and equilibrium 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.

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