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.When any of the demand shifters for output marketschange the price of that output, it changes the marginal 2.Why are service industries harder to unionize thanrevenue product (marginal product times price) of manufacturing industries?labor and other inputs used to produce that output inService industries tend to be harder to unionize thanthe same direction.manufacturing industries because service industry jobs5.Why do increases in immigration or population growth, tend to be less standardized and service industry firmsincreases in workers willingness to work at a given tend to be smaller.wage, decreases in nonwage income, or increases in3.How do union restrictions on membership or otherworkplace amenities increase the supply of labor?barriers to entry affect the wages of members?Increases in immigration or population growth increaseUnion restrictions on membership or other barriers tothe number of potential workers; increases in willing-entry reduce the quantity of labor services offered toness to work at a given wage increase hours worked;employers, reducing the number of such jobs anddecreases in nonwage income lower workers incomes,increasing their wages.increasing their willingness to work at any given wage;4.What would increasing unionization do to the wagesand an increase in workplace amenities makes work-of those who were not in unions?ing more desirable (less undesirable), also increasingIncreasing unionization would reduce the number ofworkers willingness to work at a given wage.jobs in industries that became more unionized, increas-6.What would happen to the supply of labor if nonwageing the supply of workers in industries that wereincomes increased and workplace amenities alsononunion, and lowering the wages those jobs pay.increased over the same period?5.How can unions potentially increase worker produc-Higher nonwage incomes would reduce the supply oftivity?labor, but better workplace amenities would increaseUnions can potentially increase worker productivitythe supply of labor.The net effect would depend onby providing a collective voice that workers can usewhich of these effects was of greater magnitude.to communicate their discontents more effectively,7.Why are wages in different fields not necessarilywhich can reduce the number of workers that quit,related to how important people think those jobs are?reducing employee training costs.They could alsoWages are determined by the marginal revenue prod-improve worker motivation and morale by better han-uct of labor, and that marginal value which resultsdling worker grievances.from the forces of supply and demand does not bear6.Why do data indicating that unionization tendsany necessary relationship to how important or criticalto lower firm profits weaken the argument thatpeople consider that job to be in some absolute sense.unions might actually increase worker productivity?8.If the private-market wage of engineers was greater thanIf increased worker productivity was the primarythat of sociologists, what would happen if a universityeffect of unionization, unionized firms should havetried to pay its engineering faculty and its sociologylower costs and therefore higher profits than non-faculty the same salary?union firms.But the data seem to indicate that theSay the university based its salaries on the averageopposite is true.salaries elsewhere for all fields.Other things beingequal, the resulting salaries would be below the equi- 17.5 The Market for Land and Capitallibrium salary level for engineers, resulting in a short-1.If the supply of land was perfectly inelastic, howage of engineering professors at that university (e.g [ Pobierz całość w formacie PDF ]
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.When any of the demand shifters for output marketschange the price of that output, it changes the marginal 2.Why are service industries harder to unionize thanrevenue product (marginal product times price) of manufacturing industries?labor and other inputs used to produce that output inService industries tend to be harder to unionize thanthe same direction.manufacturing industries because service industry jobs5.Why do increases in immigration or population growth, tend to be less standardized and service industry firmsincreases in workers willingness to work at a given tend to be smaller.wage, decreases in nonwage income, or increases in3.How do union restrictions on membership or otherworkplace amenities increase the supply of labor?barriers to entry affect the wages of members?Increases in immigration or population growth increaseUnion restrictions on membership or other barriers tothe number of potential workers; increases in willing-entry reduce the quantity of labor services offered toness to work at a given wage increase hours worked;employers, reducing the number of such jobs anddecreases in nonwage income lower workers incomes,increasing their wages.increasing their willingness to work at any given wage;4.What would increasing unionization do to the wagesand an increase in workplace amenities makes work-of those who were not in unions?ing more desirable (less undesirable), also increasingIncreasing unionization would reduce the number ofworkers willingness to work at a given wage.jobs in industries that became more unionized, increas-6.What would happen to the supply of labor if nonwageing the supply of workers in industries that wereincomes increased and workplace amenities alsononunion, and lowering the wages those jobs pay.increased over the same period?5.How can unions potentially increase worker produc-Higher nonwage incomes would reduce the supply oftivity?labor, but better workplace amenities would increaseUnions can potentially increase worker productivitythe supply of labor.The net effect would depend onby providing a collective voice that workers can usewhich of these effects was of greater magnitude.to communicate their discontents more effectively,7.Why are wages in different fields not necessarilywhich can reduce the number of workers that quit,related to how important people think those jobs are?reducing employee training costs.They could alsoWages are determined by the marginal revenue prod-improve worker motivation and morale by better han-uct of labor, and that marginal value which resultsdling worker grievances.from the forces of supply and demand does not bear6.Why do data indicating that unionization tendsany necessary relationship to how important or criticalto lower firm profits weaken the argument thatpeople consider that job to be in some absolute sense.unions might actually increase worker productivity?8.If the private-market wage of engineers was greater thanIf increased worker productivity was the primarythat of sociologists, what would happen if a universityeffect of unionization, unionized firms should havetried to pay its engineering faculty and its sociologylower costs and therefore higher profits than non-faculty the same salary?union firms.But the data seem to indicate that theSay the university based its salaries on the averageopposite is true.salaries elsewhere for all fields.Other things beingequal, the resulting salaries would be below the equi- 17.5 The Market for Land and Capitallibrium salary level for engineers, resulting in a short-1.If the supply of land was perfectly inelastic, howage of engineering professors at that university (e.g [ Pobierz całość w formacie PDF ]