The economics of labor market Assignment Example | Topics and Well Written Essays - 250 words

The economics of labor market - Assignment Example By consuming leisure you are forgoing the wage you could have earned by working that hour.as the wage increases leisure get more expensive and you consume less leisure. That is as the wage increase you work more hours Income effect- leisure is a normal good as you get wealthier you’ll want to consume more leisure. As the wage you receive increase you become wealthier and thus will want to consume more leisure. Thus as the real wage increase you work fewer hours 5) hire another worker as long as the worker adds at least $1 to profits or hire another worker as long as the cost of that worker (his wage) is less than or equal to the value of that worker’s extra output. 6) Technological advances decrease demand for labor Anything that changes either the amount of output workers can produce or the price of that output will shift the labor demand curve. Fishers, for example, would be more productive if they were provided with better training, more equipment, or improved technology, so all of these things would tend to increase the demand for