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The Labor Market
Case Assignment
The Case Assignment focuses on several concepts from the labor market including marginal production, total production, and wage determination. These terms are important in determining how many workers will be hired by a firm.
Write a 4- to 5-page paper that addresses the following questions:
1. Discuss two factors that would increase demand for labor.
2. If the market price of the good or service that a firm produces increases, what happen to the demand of labor? Explain.
3. Suppose that some government-sanctioned licensing requirements are lifted (removed) in a particular industry. What would happen to the wage in this market? Explain.
4. Do some research on your own. In general, do you think the government should intervene in the labor market? (Be sure to cite your references.)
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