question archive Which of the following statements best illustrates the economic concept of derived demand? a
Which of the following statements best illustrates the economic concept of derived demand? a
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Which of the following statements best illustrates the economic concept of derived demand?
a. Students work because they need income to purchase books, pizza and CD's.
b. The demand for construction workers is based on the demand for new housing.
c. The number of workers hired depends on the wage that a company must pay
d. The wage demands of workers depend on a company's profitability.
Which of the following are considered examples of human capital?
a. Housing owned by workers
b. The wage premium earned by workers who do unpleasant or risky work
c. Machines operated by skilled workers
d. The skills workers learn on the job
Which of the following arguments best explains the high pay of actor Tom Cruise?
a. Efficiency wages
b. Economic rent
c. Compensating wage differentials
d. Human capital theory
A strong union (the Screen Actors Guild) When the minimum wage is set above the market-clearing wage of competitive labor market, the outcome is:
a. A shortage in labor
b. An increase in the quantity of labor demanded
c. An increase on the quantity of labor supplied
d. Higher employment
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Which of the following statements best illustrates the economic concept of derived demand? d. The wage demands of workers depend on a company's profitability.
This option is correct because derived demand is demand for a good depending on the availability of another good. Wages are directly dependent on company profits.
Which of the following are considered examples of human capital? d. The skills workers learn on the job.
This option is correct because human capital refers to the efficiency of a worker. Efficiency translates to skills, which are usually learned from working.
Which of the following arguments best explains the high pay of actor Tom Cruise? c. Compensating wage differentials.
This option is correct because the wages are paid according to the skills of an individual. As a highly-skilled actor, Tom Cruise commands high wages.
When the minimum wage is set above the market-clearing wage of competitive labor market, the outcome is: c. An increase on the quantity of labor supplied.
This option is correct because whenever there is increase in the wages available on the market, there is also an increase in the labor supplied in economy.
