Labor Market: Supply and Demand by James DeNicco

About the Lecture

The lecture Labor Market: Supply and Demand by James DeNicco is from the course Principles of Macroeconomics (EN). It contains the following chapters:

Labor Market: Supply and Demand
Jimmy D's Hoagie Shop
Diminishing Returns
How Many Workers Do We Hire?
Labor Demand
Labor Supply
Supply vs Demand
Decrease in the Working Age Population
Unemployment & Minimum Wage

Included Quiz Questions

According to the principle of diminishing returns, if the amount of capital and other inputs are held constant, adding an additional worker…

...increases output at a decreasing rate.
...increases output at an increasing rate.
...increases output at a constant rate.
...decreases output at an increasing rate.

With an increase in wages, the “substitution effect” induces a ________________ supply of labor and the “income effect” induces a ________________ supply of labor.

Larger; smaller
Larger; larger
Smaller; smaller
Smaller; larger

Which of the following will occur as a country's work force becomes more skilled?

Labor demand will shift right, increasing the equilibrium wage and increasing equilibrium employment.
Labor demand will shift left, decreasing the equilibrium wage and decreasing equilibrium employment.
Labor demand will shift right, decreasing the equilibrium wage and decreasing equilibrium employment.
Labor supply will shift right, decreasing the equilibrium wage and increasing equilibrium employment.

Which of the following will occur if a minimum wage is implemented above the market-clearing wage (equilibrium)?