Table of contents

0. Basic Principles of Economics1h 5m
1. Reading and Understanding Graphs59m
2. Introductory Economic Models1h 10m
3. The Market Forces of Supply and Demand2h 26m
4. Elasticity2h 26m
5. Consumer and Producer Surplus; Price Ceilings and Floors3h 45m
6. Introduction to Taxes and Subsidies1h 46m
7. Externalities1h 12m
8. The Types of Goods1h 13m
9. International Trade1h 16m
10. The Costs of Production2h 35m
11. Perfect Competition2h 23m
12. Monopoly2h 13m
13. Monopolistic Competition1h 9m
14. Oligopoly1h 26m
15. Markets for the Factors of Production1h 26m
16. Income Inequality and Poverty35m
17. Asymmetric Information, Voting, and Public Choice39m
18. Consumer Choice and Behavioral Economics1h 16m

15. Markets for the Factors of Production

Shifts in Labor Supply

Microeconomics

15. Markets for the Factors of Production

Shifts in Labor Supply

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Multiple Choice

A low birthrate in Japan led to a general increase in the age of the population in the country. During the 1990s, this led to a decrease in the number of working age people in Japan. What would we expect to occur in the labor market?

Labor demand increases

Labor demand decreases

Labor supply increases

Labor supply decreases

Next problem

Verified step by step guidance

Understand the basic concepts: The labor market consists of labor supply and labor demand. Labor supply refers to the number of people willing and able to work, while labor demand refers to the number of workers that employers are willing and able to hire.

Identify the key issue: The problem states that there is a decrease in the number of working-age people due to a low birthrate and an aging population. This directly affects the labor supply.

Analyze the impact on labor supply: With fewer working-age individuals, the pool of available workers decreases. This means that the labor supply in the market will decrease.

Consider the effects on labor demand: While the problem does not provide direct information about changes in labor demand, a decrease in labor supply can lead to increased competition for workers, potentially affecting wages and employment conditions.

Conclude the expected outcome: Given the decrease in the number of working-age people, we would expect the labor supply to decrease in the labor market, aligning with the correct answer provided.