Exam 4: Labor and Financial Markets

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

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

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

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?

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

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.

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.

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?

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

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.

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

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

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

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

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

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

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?

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

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

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