Chapter 13 or 26. Factor Markets With Emphasis on Labor Market: Pre Class & In-Class Activities Packet Name/ LD. Number: Part 3. Discussion Questions and Problems I _ What does it mean to say that the demard for a factor is a derived demand? 2. Why is MRP curve a firm's factor demand curve? 3 _ What forces and factors determine the ra for a particular type Of labor? 4. What is the between labor prcductity and rates? 5. What rnht one effect Of government legislating 'Wage rates? Using ttE theory developed this chapter, explain he following: a. Why a worker in Etliopia is likely to earn much less than a in Japan b. Why the army expects recruitment to rise during economic recessions c. Why basketbal Stars earn relatively urge incomes d. Why jobs that carry a health risk Offer higher pay than Bbs that do rnt, ceteris paribus. 7 _ Discuss the factors that might prevent the equalization Of wage rates for dentical or rnparable jobs across Ebor markets. Discuss the firms Objective, its constraints, and how it makes ch'ices its role as a buyer Of resources. 9. Explain he relationship tetween each Of the pairs Of concepts: a. The elasticity' Of demand for a prcduct and elasticity Of demand for the labor that produces the product b. The ratio Of Ebor cost to total cost the elastidty Of demand for labor c. The number Of substitutes for labor and elasticity Of demaTd for labor 10 What do substitution and income effects have to do With he supply curve Of labor?