Demand and Supply in Factor Markets - LOS b ～ elastic, class, physical, capital, demand

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6.Are a firm’s demand for labor and a firm’s demand for physical capital more elastic in the long run or in the short run?

Demand for labor more elastic in the:

Demand for physical capital more elastic in the:

 

A)              short run                               short run

B)              long run                                 long run

C)              short run                                long run

D)              long run                                short run

7.A labor market analyst makes the following assertions about trends in labor income:

Statement 1: The net effect of technological improvements has been to increase the demand for labor. This can be seen in the long-run increase in real wage rates.

Statement 2: The broadest measure of labor income is total wages, salaries, and tips received.

Are these two statements correct?

Statement 1

Statement 2

 

A)                Correct                               Correct

B)                Incorrect                             Correct

C)                Correct                             Incorrect

D)                Incorrect                           Incorrect

8.All of the following are factors that can cause shifts in the demand curve for a resource EXCEPT:

A)  an increase in the supply of the resource.

B)  an increase in the resource’s productivity.

C)  a decrease in the prices of other resources.

D)  an increase in demand for the final good.

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答案和详解如下：

6.Are a firm’s demand for labor and a firm’s demand for physical capital more elastic in the long run or in the short run?

Demand for labor more elastic in the:

Demand for physical capital more elastic in the:

 

A)               short run                            short run

B)               long run                              long run

C)               short run                             long run

D)               long run                             short run

The correct answer was B)

The short run is defined at the period during which the quantities of other inputs are fixed. In the long run a firm’s demand for capital is more elastic because technology, the amount of labor, and the quantities of other inputs can be varied. A firm’s demand for labor is more elastic in the long run than in the short run. For a given increase in wage rates, a firm’s quantity of labor demand will decrease more when it can substitute other factors of production (the long run) than when other factors are fixed (the short run).

7.A labor market analyst makes the following assertions about trends in labor income:

Statement 1: The net effect of technological improvements has been to increase the demand for labor. This can be seen in the long-run increase in real wage rates.

Statement 2: The broadest measure of labor income is total wages, salaries, and tips received.

Are these two statements correct?

Statement 1

Statement 2

 

A)               Correct                               Correct

B)               Incorrect                              Correct

C)               Correct                               Incorrect

D)               Incorrect                             Incorrect

The correct answer was C)

Statement 1 is correct. Technological improvements increase demand for some types of labor and decrease demand for other types, but the net long-run effect has been to increase demand for labor as a whole. The long-run increase in real wage rates is evidence that supports this assertion. Statement 2 is incorrect. A more complete measure of labor income is total labor compensation, which includes employer-provided benefits as well as wage and salary income.

8.All of the following are factors that can cause shifts in the demand curve for a resource EXCEPT:

A)  an increase in the supply of the resource.

B)  an increase in the resource’s productivity.

C)  a decrease in the prices of other resources.

D)  an increase in demand for the final good.

The correct answer was A)      

There is no reason to believe that an increased supply will cause a shift in the demand curve. There is no indication to whether a supplier will reduce the price to reflect the change in supply.