CH 4
Which results in a rightward shift of the market demand curve for labor?
an increase in demand for the firm's product
Usury laws
impose an upper limit on the interest rate that lenders can charge many states have
Shortage
imposition of a price ceiling on a market
If labor demand is downward sloping and labor supply is upward sloping, then when labor demand rises faster than labor supply, it is expected that real wages...
increase
Improvements in the productivity of labor will
increase wages
A __________ supply of workers tends to __________ real wages
larger; decrease
When consumers and businesses 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
middle of a recession, inc min wage. Effect of policy?
Both the leftward shift in the labor demand curve and the higher minimum wage will lead to an increase in the unemployment rate
The supply curve of textbooks (which are produced using paper made from trees) will shift to the left in response to
a sharp increase in the demand for and construction of wood-frame homes
Which will not result in a leftward shift of the market demand curve for labor?
an increase in wage rate
Butter & margarine = substitutes. If price of butter rises, then market for margarine...
both the equilibrium price and quantity will rise
If the demand for software engineers __________ slower than does supply, then wages of software engineers will __________
increases; fall
shortage at a particular price, the quantity sold at that price will equal...
quantity supplied at that price
Technology complement for high skill labor becomes cheaper =
right shift for demand curve for high-skill labor
Rate of return
simplicity is the interest rate
Are markets always in equilibrium?
No, but if there is no outside interference, they tend to move toward equilibrium
Law of supply: a higher __________ for labor leads to a higher quantity of labor supplied
price
