1. Arrows up or down: A decrease in the supply of nurses will
the equilibrium wage and
the equilibrium quantity of nursing services.
2. Arrows up or down: An increase in the demand for nursing services will
the equilibrium wage and
the equilibrium quantity of nursing services.
3. Arrows up or down: A minimum wage
the quantity of labor demanded and
the quantity of labor supplied.
4. A minimum wage for restaurant workers brings good news to
, but bad news to
and
.
5. In Figure 32.5 on page 712, an increase in the wage decreases the quantity of labor demanded. Using the simple approach to computing percentage changes (see the Appendix to Chapter 1), the implied elasticity of demand for labor is
.
fig.32.5
6. The wage for a particular occupation will be relatively low if labor
(demand/supply) is small relative to labor
(demand/supply).
7. Better working amenities in the manufacturing industry would shift the labor supply curve to the
and wages to be relatively
(high/low).
8. In some countries, it is customary to tip restaurant waiters. We would expect the wages paid to waiters to be
(higher/lower/the same) in countries where tips are customary.
9. After several years of training, Larry works as a reservoir engineer in an oil and gas firm. This job would normally be expected to offer a (higher/ lower) wage as compared to a desk job.
10. The wage premium for beautiful people is about
percent, while the wage penalty for unattractive people is about
percent. (Related to Application 3 on page 716.)
11. Beautiful workers get wider opportunities to , so a small difference in innate characteristics can lead to a large difference in
. (Related to Application 3 on page 716.)