chapter 4 practice quiz Flashcards
whenever there is a surlprus at a particular price, the quantity sold at that price will equal:
the quantity demanded at that price
when the consumers and businsses have greater confidence that they will be able to repay in the future,
the quantity demanded of financial capital at any given interest rate will shift to the right.
steel mill wage costs increase by 18% over a year. what is the likely economic effect on the market for steel?
there is an increase in the cost of producing steel, which shifts the supply curve of steel to the left, thereby increasing the price of steel.
as the ____ substitute for low-skill labor becomes available, the demand curve for low-skill labor will shift to the left.
technology
many states do have ____, which impose an upper limit on the interest rate that lenders can charge.
usury laws
which of the following results in a rightward shift of the market demand curve for labor?
an increase in demand for the firm’s product
in contrast to goods and services markets, ____ are rare in labor markets, because rules that prevent people from earning income are not politically popular.
price ceilings
whenever there is a shortage at a particular price, the quantity sold at that price will equal:
the quantity supplied at that price.
if labor demand is downward sloping and labor supply is upward sloping, then when labor demand rises faster than labor supply, it’s expected that real wages
will increase
the imposition of a price ceiling on a market often results in:
a shortage
improvements in the productivity of labor will tend to:
increase wages
since Baltimore passed the first ___ in 1994, several dozen cities enacted similar laws in the late 1990s and into the 2000s
living wage law
other things being equal, a ____ supply of workers tends to ____ real wages.
larger; decrease
many cooks view butter and margarine to be substitutes. if the price of butter rises, then in the market for margarine:
both the equilibrium price and quantity will rise.
a more efficient means of processing algae to produce an anticancer drug is discovered. as a result, the supply curve for the drug will:
shift to the right, decreasing the price of the drug.
if the demand for the software engineers ____ slower than does supply, then wages of software engineers will ___
increase; fall
which of the following will result in a rightward shift of the market supply curve for labor?
an increase in labor productivity
as the _____ complement for high-skill labor becomes cheaper, the demand curve for high-skill labor will shift to the right.
technology
the US has approx. ___ credit card holders.
180 million
if congress and presiden imposed a law that gas stations could not charge more than $1.00/gallon for gas what impact would this have on the gasoline market?
a shortage
