Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 18 - Part VI - The Markets for the Factors of Production - Questions for Review - Page 391: 5

Answer

Wages would decrease. There would be an increase in the population of the country, so the supply for labor would shift the equilibrium price down (and employment would increase).

Work Step by Step

Rents earned by landowners and owners of capital would increase. There would be an increase in demand for land, so owners could charge more for the same land.
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