00:01
Six different observations about a given labor market and asked to determine what those observations would imply about the nature of this labor market.
00:14
So let's look through those six examples.
00:17
First, we're told that elevator repairs have a higher accident rate than most other jobs.
00:25
Well, due to this market for elevator repairs having a higher risk, a higher risk, a higher job, higher danger associated with it, danger is a non -wage factor that can impact the wage.
00:38
So we would expect to see a higher wage in this market or a higher price of labor.
00:45
Next, we are told that people who live in new york city have to pay higher rent.
00:50
Well, that will make the market for labor in new york city less attractive.
00:55
When the market is less attractive, there will be a decrease in the supply of labor in new york city.
01:01
And we all know that when there is a decrease in supply, you can expect an increase in the price of labor or the wage.
01:09
So that would be in the market for labor in new york city, we would anticipate an increase in the wage.
01:16
Next, we are told that people like to work in new york city because there's a lot to do.
01:21
Well, that would have just the opposite effect...
