12th grade Land, labor, capital and entrepreneurship worksheet

Land, labor, capital and entrepreneurship

Grade 12 Social Studies Worksheet

Circle the best answer.

1. Read this first

   Welders' labor market in a made-up town

   Wage per hour	Welders wanted before	Welders wanted after	Welders offered before	Welders offered after
   $16	130	160	70	100
   $18	115	145	85	115
   $20	100	130	100	130
   $22	85	115	115	145
   $24	70	100	130	160

   Note: The towns are made up. Card A: Welders are hired in a labor market where the wage is the price. Before any change, firms want 100 welders and 100 welders offer to work at $20 an hour. Card B: A new factory opens and raises the number of welders firms want at every wage (the 'wanted after' column). Card C: A training program raises the number of welders offered at every wage (the 'offered after' column). Card D: In a second town, a hospital opens and raises the demand for nurses, and a nursing school graduates more nurses. The sizes of the two changes are not given.

2. 1.

   Pia applies both the factory (card B) and the training program (card C) to the schedule. Which result fits the chart?

   • The wage rises to $22, because the factory raised the number of welders firms want at each wage
   • The wage stays at $20 and employment stays at 100, since the two changes cancel each other out
   • The wage stays at $20 and employment rises to 130, since wanted and offered both rise by 30
   • The wage falls to $18 and employment rises to 115, because more welders are now offered for work
3. 2.

   Suppose only the factory opens and there is no training program. What does the schedule predict for the wage and employment, Bo asks?

   • The wage rises to $24, the top of the chart, since firms now want 130 welders at $20 an hour
   • The wage stays at $20 and employment rises to 130, as it does with both changes together
   • The wage falls to $18, because firms compete for welders and the competition bids pay lower
   • The wage rises to $22 and employment to 115, where wanted-after and offered-before both equal 115
4. 3.

   A reporter writes that the factory raised welders' pay. Esme checks cards B and C and the chart. Which statement about the report is best supported?

   • Supported: the factory raised the number wanted at each wage, and more wanted means higher pay
   • Not supported: employment stayed at 100 welders, and the hourly wage was what changed in the end
   • Supported: at $22 firms want 115 welders, more than the 100 who were offered before the factory
   • Not supported: with the training program too, the wage is still $20; employment rose, not pay
5. 4.

   In card D's town, Jun predicts the nurse market after the hospital and the school both act. Which prediction is certain?

   • The wage will rise, because the hospital's demand is the stronger of the two forces at work
   • More nurses will be employed, but the wage may rise, fall or stay the same
   • The number employed cannot be told, because the two changes pull the wage in opposite directions
   • The wage will fall, because the school adds nurses and extra workers cost less to hire
6. 5.

   Later data show the school added many more nurses than the hospital added jobs. What follows for the wage and employment, Kira asks?

   • The wage is unchanged, because the hospital's gain and the school's gain cancel in the wage
   • Employment falls, because a lower wage makes fewer nurses willing to work in the town
   • The wage falls and employment rises, because the gain in supply outweighs the gain in demand
   • The wage rises, because the hospital also raised demand for nurses and demand sets the price
7. 6.

   Luz imagines new events in card D's town. Which pair would raise nurses' wages whatever the sizes of the changes?

   • The hospital adds jobs while the school graduates more nurses: demand rises, so pay rises with it
   • The hospital closes while many nurses move away: both shrink employment, so pay must rise
   • The hospital adds jobs while many nurses move away: demand up and supply down
   • The hospital closes while the school graduates a bigger class: fewer jobs and more nurses push pay up

8. Employee pay as a share of gross domestic income, 2019 to 2025

   Year	Compensation of employees (percent of GDI)
   2019	53.3
   2020	54.6
   2021	53.0
   2022	51.7
   2023	51.5
   2024	51.4
   2025	50.9

   Note: BEA data as listed by FRED (series A4002E1A156NBEA), retrieved Nov 14, 2026. Gross domestic income (GDI) adds up the incomes earned in producing GDP: pay to employees, profits, interest, rent and other income, plus taxes on production and depreciation (in our words). Compensation of employees counts wages, salaries and employer-paid benefits and payroll taxes. Card B: BEA, national income, compensation of employees, in billions of dollars: 2022, 13,447.8; 2023, 14,234.5; 2024, 15,041.7. Card C: A commentator writes that machines are taking over from workers, so workers' pay is shrinking.

9. 7.

   Milo writes one claim from the chart. Which claim does it support best?

   • The employee share was lower in 2025 (50.9 percent) than in 2019 (53.3), after a rise in 2020
   • The employee share has fallen in each year since 2019, with no rise in between
   • Profits took the 2.4 points that employees lost, since profits are the other part of income
   • Employees were paid less in dollars in 2025 than in 2019, since their share of income was lower
10. 8.

    Noah compares 2022 with 2024 using the chart and card B. Which statement is best supported?

    • The falling share shows that average pay per worker rose less than prices did over the two years
    • Compensation grew about 12 percent, so employees' share of income must have risen as well
    • Compensation grew about 12 percent over the two years while its share slipped from 51.7 to 51.4
    • Because the share slipped from 51.7 to 51.4, total pay to employees fell between 2022 and 2024
11. 9.

    A commentator (card C) says machines are taking over and pay is shrinking. Ren tests the claim. What is the best verdict?

    • Not supported: pay rose from $13,447.8 to $15,041.7 billion, so labor's position did not change
    • Strongly supported: employee pay is shrinking, since 2019's 53.3 percent is above 2025's 50.9
    • Strongly supported: the share fell while machines produced more, so machines caused the fall
    • Weakly supported: the share fell, but dollar pay rose and the cards cannot show a cause
12. 10.

    Pay rose in dollars while its share fell. Zee asks how both can be true. Which explanation fits the cards?

    • Total income fell while pay rose, so pay should have become a larger share of the smaller total
    • Total income grew faster than pay, so a rising amount became a smaller part of a bigger total
    • Employers cut pay per hour while hiring more workers, which raised the total but lowered the share
    • A share is measured in dollars, so a share of 51.4 percent means $51.4 billion of pay