Question 1

Explain why U.S. minimum wage laws have historically had only a small impact on employment.

Accepted Answer

Let’s suppose that the minimum wage set ...

Question 2

Many cooks view butter and margarine to be substitutes. If the price of butter rises, then in the market for margarine:

Accepted Answer

A)   the equilibrium price will fall and the equilibrium quantity will fall.
B)   both the equilibrium price and quantity will rise.
C)   the equilibrium price will rise and the equilibrium quantity will decrease.
D)   the equilibrium price will rise, while the change to equilibrium quantity is indeterminate.

Question 3

In contrast to goods and services markets, _______ are rare in labor markets, because rules that prevent people from earning income are not politically popular.

Accepted Answer

A)   minimum wages
B)   price floors
C)   price ceilings
D)   living wage laws C

Question 4

Which of the following will not result in a leftward shift of the market demand curve for labor?

Accepted Answer

A)   a decrease in labor productivity
B)   a decrease in demand for the firm's product
C)   an increase in the wage rate
D)   a decrease in the firm's product price

Question 5

Explain the nature of individual and business decisions which drive the demand and supply of financial capital. Specifically, what kinds of factors will shift demand and supply of financial capital?

Accepted Answer

Those who supply financial capital face ...

Question 6

Several types of economic events can cause a shift in labor demand, so that a higher or lower quantity of labor is hired at every salary or wage. List three of these events.

Accepted Answer

Changes in the numbe...

Question 7

Table 5-1
-Refer to Table 5-1. If D2 and S1 represent the demand and supply schedules in a particular market, then the equilibrium price and quantity are _______ and _______, respectively.

Accepted Answer

A)   $8; 15
B)   $10; 17
C)   $12; 9
D)   $12; 10

Question 8

Many economists believe that the trend toward greater wage inequality across the U.S. economy was primarily caused by _______.

Accepted Answer

A)   the recession
B)   new technologies
C)   the rise of global markets
D)   inflation

Question 9

Several types of economic events can cause a shift in labor demand, so that a higher or lower quantity of labor is hired at every salary or wage. List three of these events.

Accepted Answer

Changes in education...

Question 10

A straightforward example of a _______ , often used for simplicity, is the interest rate.

Accepted Answer

A)   price ceiling
B)   financial investment
C)   rate of return
D)   price floor

Question 11

The demand and supply model can explain the existing levels of prices, wages, and rates of return. Demand and supply can also be used to explain how economic events will cause changes in prices, wages, and rates of return. There are only four possibilities: what are they?

Accepted Answer

The economic event may cause t...

Question 12

Which of the following will not result in a rightward shift of the market supply curve for labor?

Accepted Answer

A)   a decrease in non-wage income
B)   an increase in the working-age population
C)   an increase in labor productivity
D)   an increase in immigration

Question 13

As the _______ substitute for low-skill labor becomes available, the demand curve for low-skill labor will shift to the left.

Accepted Answer

A)   high-skill labor
B)   lower wage
C)   technology
D)   market C

Question 14

The supply curve of textbooks which are produced using paper made from trees)  will shift to the left in response to:

Accepted Answer

A)   a decline in college tuition.
B)   a sharp increase in the demand for and construction of wood-frame homes.
C)   an increase in the supply of lumberjacks.
D)   an end to government regulations that limit timber harvesting in national forests.

Question 15

As the _______ complement for high-skill labor becomes cheaper, the demand curve for high- skill labor will shift to the right.

Accepted Answer

A)   technology
B)   low-skill labor
C)   market
D)   lower wage A

Question 16

In 2010, Americans had about _______ outstanding in credit card debts not paid on time.

Accepted Answer

A)   $900 billion
B)   $90 billion
C)   $900 million
D)   $90 million

Question 17

Whenever there is a surplus at a particular price, the quantity sold at that price will equal:

Accepted Answer

A)   quantity demanded plus quantity supplied) /2.
B)   the quantity supplied at that price.
C)   the quantity supplied minus the quantity demanded.
D)   the quantity demanded at that price.

Question 18

On April 1, 2009, in the middle of a recession, the government of the province of Ontario, Canada increased the provincial minimum wage from $8.75 to $9.50. What will the likely effect of this policy be?

Accepted Answer

A)   Both the leftward shift in the labor demand curve and the higher minimum wage will lead to an increase in the unemployment rate.
B)   Low income workers will be better able to survive the recession at the new, higher wage rate.
C)   More people will be hired at the higher wage rate offsetting the effects of the recession.
D)   The higher wage will increase the supply of labor offsetting the effects of the recession.

Question 19

Whenever there is a shortage at a particular price, the quantity sold at that price will equal:

Accepted Answer

A)   the quantity demanded at that price.
B)   the quantity supplied minus the quantity demanded.
C)   the quantity supplied at that price.
D)   quantity demanded plus quantity supplied) /2.

Question 20

Steel mill wage costs increase by 18 percent over a year. What is the likely economic effect on the market for steel?

Accepted Answer

A)   There is an increase in the cost of producing steel, which shifts the supply curve of steel to the right, thereby increasing the price of steel.
B)   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.
C)   There is a decrease in the cost of producing steel, which shifts the supply curve of steel to the left, thereby increasing the price of steel.
D)   The increase in wage costs will shift the demand curve for steel to the left, increasing the cost of steel.

Exam 4: Labor and Financial Markets

Explain why U.S. minimum wage laws have historically had only a small impact on employment.

Correct AnswerverifiedLet’s suppose that the minimum wage set ...View AnswerShow Answer

Many cooks view butter and margarine to be substitutes. If the price of butter rises, then in the market for margarine:

Correct AnswerverifiedShow Answer

In contrast to goods and services markets, _______ are rare in labor markets, because rules that prevent people from earning income are not politically popular.

Correct AnswerverifiedC

Which of the following will not result in a leftward shift of the market demand curve for labor?

Correct AnswerverifiedShow Answer

Explain the nature of individual and business decisions which drive the demand and supply of financial capital. Specifically, what kinds of factors will shift demand and supply of financial capital?

Correct AnswerverifiedThose who supply financial capital face ...View AnswerShow Answer

Several types of economic events can cause a shift in labor demand, so that a higher or lower quantity of labor is hired at every salary or wage. List three of these events.

Correct AnswerverifiedChanges in the numbe...View AnswerShow Answer

Table 5-1 -Refer to Table 5-1. If D2 and S1 represent the demand and supply schedules in a particular market, then the equilibrium price and quantity are _______ and _______, respectively.

Correct AnswerverifiedShow Answer

Many economists believe that the trend toward greater wage inequality across the U.S. economy was primarily caused by _______.

Correct AnswerverifiedShow Answer

Several types of economic events can cause a shift in labor demand, so that a higher or lower quantity of labor is hired at every salary or wage. List three of these events.

Correct AnswerverifiedChanges in education...View AnswerShow Answer

A straightforward example of a _______ , often used for simplicity, is the interest rate.

Correct AnswerverifiedShow Answer

The demand and supply model can explain the existing levels of prices, wages, and rates of return. Demand and supply can also be used to explain how economic events will cause changes in prices, wages, and rates of return. There are only four possibilities: what are they?

Correct AnswerverifiedThe economic event may cause t...View AnswerShow Answer

Which of the following will not result in a rightward shift of the market supply curve for labor?

Correct AnswerverifiedShow Answer

As the _______ substitute for low-skill labor becomes available, the demand curve for low-skill labor will shift to the left.

Correct AnswerverifiedC

The supply curve of textbooks which are produced using paper made from trees) will shift to the left in response to:

Correct AnswerverifiedShow Answer

As the _______ complement for high-skill labor becomes cheaper, the demand curve for high- skill labor will shift to the right.

Correct AnswerverifiedA

In 2010, Americans had about _______ outstanding in credit card debts not paid on time.

Correct AnswerverifiedShow Answer

Whenever there is a surplus at a particular price, the quantity sold at that price will equal:

Correct AnswerverifiedShow Answer

On April 1, 2009, in the middle of a recession, the government of the province of Ontario, Canada increased the provincial minimum wage from $8.75 to $9.50. What will the likely effect of this policy be?

Correct AnswerverifiedShow Answer

Whenever there is a shortage at a particular price, the quantity sold at that price will equal:

Correct AnswerverifiedShow Answer

Steel mill wage costs increase by 18 percent over a year. What is the likely economic effect on the market for steel?

Correct AnswerverifiedShow Answer

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Let’s suppose that the minimum wage set ...
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Those who supply financial capital face ...
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Changes in the numbe...
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Table 5-1 -Refer to Table 5-1. If D2 and S1 represent the demand and supply schedules in a particular market, then the equilibrium price and quantity are _ and _, respectively.

Correct Answer
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Changes in education...
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The economic event may cause t...
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C

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A

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