microchapter18 - RikkiNorton Microeconomics Chapter18...

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Rikki Norton Microeconomics Chapter 18 Questions for Review (1, 4) 1. One event that could change the supply of labor is a change of taste, for example the  increase of women working and less staying at home. Another example is immigration, people  moving to different regions changes the supply of labor.  4.  A large immigration would increase the supply of labor, thus reducing the wage. With more  labor working with capital and land, the marginal product or capital and land is higher, so rents  earned by owners of land and capital would increase.  Problems and Applications (1, 2, 7a, 10) 1. a. The inflow of capital shifts the supply curve to the right, and would result in a reduction in  the rental rate on capital from and an increase in the quantity of capital.     b. The increase in capital increases the marginal product of labor and the value of marginal 
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This note was uploaded on 03/14/2011 for the course POLSCI 1123 taught by Professor Thompson during the Spring '11 term at Oklahoma State.

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microchapter18 - RikkiNorton Microeconomics Chapter18...

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