Question

Explain how changes in technology affect and change the demand for labor. Distinguish between situations in which a particular type of technological change increases the demand for a particular type of labor and those in which it decreases the demand for a particular type of labor. Provide examples to support your answer. 25 points

Most major sports organizations (NFL, NBA, NHL, etc.) and the players' unions can be viewed as a bilateral monopolies. In the light of the text discussion and the theory of bilateral monopoly, discuss the situation faced by the team owners and players as to ease of settling salary and salary cap disputes, prospects for the future, etc. 25 points

If the purpose of taxation is to raise revenue: 25 points

Would it be better for the government to levy taxes on products whose demand is elastic or inelastic? Explain.

Are there any other reasons why governments levy taxes? Explain.

Compare and contrast the economic issues involved in each of the following pairs of terms: 25 points.

A. Rule of reason versus illegal per se

- compare them

- contrast them

B. Antitrust policy versus regulation and deregulation

- compare them

- contrast them

Answer 1

Answer:- The text says, “Technological changes can increase the demand for some workers and reduce the demand for others. The production of a more powerful computer chip, for example, may increase the demand for software engineers. It may also allow other production processes to be computerized and thus reduce the demand for workers who had been employed in those processes. The application of sophisticated technologies to production processes has boosted the marginal products of workers who have the skills these technologies require. That has increased the demand for skilled workers. The same technologies have been a substitute for less-skilled workers, and the demand for those workers has fallen. As the Case in Point on the impact of computer technology implies, envisioning the impact of technological change on demand for different kinds of labor may be something to keep in mind as you consider educational options. As you consider your major, for example, you should keep in mind that some occupations may benefit from technological changes; others may not.” (Principles of Microeconomics, v. 1.0) To sum paragraph up, technology has become a blessing and a curse for many workers. Sometimes technology has been able to help them perform their jobs easier and faster, and other times, the technology replaces them all together. A machine may not ever be able to think and infer like the human brain can – let’s say, for the job of being a counselor. But a machine can defiantly put together a toy in a factory much faster than human hands ever could. Slowly but surely, technology is replacing people in the work force. This reading from the text warns for people to choose their professions wisely, so you too cannot be replaced by a computer.

Answer:- If the main objective of tax is to earn revenue , then it must be imposed to those products who have inelastic demand as when the tax is imposed, the rice increases. If the demand is elastic, then people will not buy the product and it will hurt the revenue earned from tax. On the other hand, if the demand is inelastic, despite price rise, people will buy the product and more revenue can be earned.