1. What is the difference between the marginal product of labour and the marginal revenue product of labour?
2. Why is thedemand curvefor labour downward sloping?
3. What are the five most important variables that cause the market demand curve for labour to shift?
4. Fran owns an apple orchard. She employs 70 apple pickers and pays them $22 per hour to pick apples, which she sells for $5.50 per box. If Fran is maximising profits, what is the marginal revenue product oflabourof thelastworkershehired?Whatisthatworker'smarginalproductof labour?
5. Whatarethesubstitutioneffectandtheincomeeffectresultingfromawagechange?What are the three most important variables that cause the market supply curve for labour to shift?
6. In the case that the original amount is less than the changed amount, if the changed rate is less than the answers are swapped i.e. more is now less. Danielle was earning $68 per hour and working 45 hours per week.Then Danielle's wage changed to $84 per hour, and as a result, she now works 40 hours per week. What can we conclude from this information about the income effect and the substitution effect of a wage change for Danielle? If the federal government reduced the personal income tax rate, what do you think would be the likely effect on the labour supply curve?
7. ThefractionoftheAustralianpopulationolderthanage65isincreasing.ThelikelyeffectoftheageingoftheAustralianpopulationonthesupplycurveforlabourwillbe?State whether each of the following events will result in a movement along the market supply curve of agricultural labour in Australia or whether it will cause the market supply curve of labour to shift. If the supply curve shifts, indicate whether it will shift to the left or to the right in the provided graph.
8. TheAustralian labour supply has grown by millions in the past 50 years.As the supply of labour has been increasing, why haven't wages decreased and instead have increased?
9. Over time, the gap between the wages of workers with a tertiary degree and the wages of workers without a tertiary degree has been increasing. Shouldn't this gap have increased the incentive for workers to earn a tertiary degree, thereby increasing the supply of tertiary-educated workers and reducing the size of the gap? What isacompensating differential? Give an example.
10. Is the fact that one group in the population has higher earnings than other groups evidence of economic discrimination?
11. The economic penalty is not enough to eliminate discrimination because of the presence of all of the following except:
12. The prize money of players in major tennis tournaments is determined by negotiation between the players' union and the appropriate tennis authorities. How does this fact explain why professional sportspeople are paid more than university lecturers? Briefly explain.
13. A student remarks, I don't think the idea ofmarginal revenue product reallyhelps explain differences in wages.Afterall, a ticket to afootball game costs much lessthan university fees, yet footballplayers are paid much morethan university lecturers.Doyouagreewiththestudent'sreasoning?
14. Whatis the equilibrium quantity ofchemical engineers hired, and what is the equilibrium wage? (Enter numeric responses using integers.)
15. the graph for number 7

Graph A 51 Wage (dollars) Quantity of labour