Description
***Replies only need to be 150-200 words. No need for references or formatting** 1. What is your understanding of factor markets? Please give real world examples of each factor of production presented.
2. Explain how the labor-demand and the labor-supply curves shift? How do we achieve an equilibrium in the labor market?
3. Under current conditions, our policymakers have proposed requiring
firms to give workers benefits. One of them is the minimum wage which
in some parts of my state the minimum wage level had been approved at
$15 per hour. Would this cause a shift in labor-supply or labor-demand
curve? Would this raise or decrease the impact of the law on wages and
employment?
4.Explain some of the factors that determine the level of individual income in your place of work or firm you're familiar with. What is the relationship between productivity and the wages earned by an employee in that firm? Support your answer with a theory and any information taken from a source.
5. Entrepreneurship is a labor involving a high degree of organizational skills and creativity. If given the chance to be an entrepreneur what business activity you think you will excel. Please be clear and specific.
6. In reference to Income Inequality and Poverty, how do you define "poor"? What is the Lorenz curve and its significance to this definition?
7. Discuss economic life cycles. Where do you fit in a life cycle? Please show some real world applications.
8. Please give some real world applications to the following concepts:
A. Libertarianism
B. Liberalism
C. Utilitarianism
D. Negative tax
Explanation & Answer
Your assignment is complete, if you have any queries shoot me a message and hang tight, I'll assist you in a couple minutes or asap. :-)Have a blessed day
Question 1
Factor markets refer to marketplaces where factors of production like labor, capital and resources
are bought and sold. Factors of production are the inputs put into the production of goods and
services to make profit. According to economists the four factors of production are: Land, Labor,
capital, and entrepreneurship. Land refers to the natural resources used in the production process.
An example is timber used in the manufacture of sofa sets. Labor refers to human effort in the
production process. An example is employees in the sofa set manufacturing company. Capital
relates to the tools and machinery used in the process of production. Examples include nails,
hammers, and saws used in the conversion of timber to sofa sets. Entrepreneurship refers to
individuals with necessary skills to run a business. The success of a business depends on them.
An example is Mr. John Chloe who is the founder of ‘Chloe Sofas,' a company that has been
selling sofa sets for the last ten years.
Question 2
Shifts in labor demand and labor supply
The labor demand curve of an industry is downward sloping and is a function of real wage.
Increased real wages lead to reduced demand for labor. This is because the employees become
expensive for firms and the vice versa is true. Increased capital in the industry leads to increased
productivity. On the other side, reduced productivity due to reduced capital stock leads to a shift
of the demand curve to the left. This, in turn, leads to high demand for labor and the demand
curve shifts up and to the right. Increased output prices lead to increased demand for labor and
the curve shifts to the right. However, falling output prices lead to reduced demand for labor and
in turn a change to the left.
Labor supply curve of an industry is upward sloping and shows how labor supplied responds to
wage. It also depicts trade-offs between labor and work. An increased population growth shifts
the labor supply curve to ...
Review
Review
