TEMPLE UNIVERSITY

Department of Economics

Microeconomics

Lecture 13

Factor Markets

Andrew J. Buck

Directions:  Click on the "file" item at the top left of the browser window.  Click on "Save as..." from the pull down menu.   Do the necessary reading then answer the questions in the file you just saved.   When you are all done then send me your answers as email.  The best thing to do is to include the file with the questions and your embedded answers as an attachment.

Name:____________________________-

1. In general we expect the supply of funds to rise as interest rates rise. Suppose a particular individual has a fixed accumulation goal. Is his supply of funds schedule upward sloping?

2. Is the relationship between earnings and education the same in both the primary and secondary labor markets?

3. Recall that Ronald Reagan dismantled the Air Traffic Controllers Union. In spring 1998 the TWU threatened to strike SEPTA.  Do unions really have any bargaining power or do they exist at the whim of management?

4. If the forces of supply and demand really determine wage rates, why do firms leave the Northeast where there are abundant supplies of skilled labor?

5. Why does the President of the United States earn less than the president of any of the car manufacturers?

6. What fraction of your salary might be considered rent? What features of you and your job account for this?

  

 

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