Question

Question 1

In what ways does technology impact labor demand?

That's not right.

• It increases demand for certain types of workers.

• It decreases demand for certain types of workers.

• It increases demand for all workers.

• It decreases demand for all workers.

• 2 question

• Which of the following factors would not cause the supply of labor to shift?

• an increase in the amount of education required to perform a job

  implementation of a new government program that offers child care benefits to workers

  an increase in the number of companies producing a certain product

  All of the above would cause the supply of labor to shift.

  Question 3

  If a maximum interest rate for credit cards is set above the equilibrium interest rate, ________________.

  interest rates will increase

  interest rates will decrease

  there will be a surplus of credit cards

  no change will occur

  Question 4

  Which of the following will definitely occur in the coffee market if coffee producing countries experience a bumper harvest at the same time a new study is released demonstrating the health benefits of coffee?

  The equilibrium price of coffee will rise.

  The equilibrium price of coffee will fall.

  The equilibrium quantity will increase.

  The equilibrium quantity will fall.

Answer 1

Question 1. It increases demand for certain types of workers. Of course there are skilled semi skilled and unskilled workers and technology does not support all of these. For skilled workers mostly, who are able to grasp the technology more easily, technology increases their demand

Question 2. an increase in the number of companies producing a certain product. This would result in more resources being used and so more labor will be demanded at each wage rate. Hence demand for labor increases and demand curve shifts.

Question 3. interest rates will decrease. Since it is the maximum, it cannot go above but can surely do down with the market forces

Question 4. The equilibrium quantity will increase.