Ch 4 Multiple Choice

Many states do have ____________, which impose an upper limit on the interest rate that lenders can charge. a.price ceiling laws b.usury laws c.price floor laws d.minimum interest rate

b

As the ________ substitute for low-skilled labor becomes available, the demand curve for low-skill labor will shift to the left a.high-skill labor b.lower wage c.technology d.market

c

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 __________. a.will stay the same b.will decrease c.will increase d.may increase, decrease or stay the same depending on relative slopes

c

If the demand for software engineers __________ slower than does supply, then wages of software engineers will __________. a.increase;remain constant b.increase; rise c.increases; fall d.decreases;fall

c

Improvements in the productivity of labor will tend: a.decrease wages b.decrease the supply of labor c.increase wages d.decrease the supply of labor

c

In contrast to goods and services markets, _____________ are rare in labor markets, because rules that prevent people from earning income are not politically popular. a.minimum wages b.price floors c.price ceilings d.living wage laws

c

Other things being equal, a __________ supply of workers tends to __________ real wages. a.smaller;not change b.larger;increase c.smaller;decrease d.larger;decrease

d

Which of the following results in a rightward shift of the market demand curve for labor? a decrease in labor productivity b.a decrease in the firm's product price c.an increase in the wage rate d.an increase in demand for the firm's product

d

When consumers and businesses have greater confidence that they will be able to repay in the future,____________ a.the quantity demanded of financial capital at any given interest rate will remain unchanged b.the quantity demanded of financial capital at any given interest rate will shift to the left c.the quantity demanded of financial capital at any given interest rate will shift to the right d.the quantity demanded of financial capital at any given interest rate will achieve equilibrium

c

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

c

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

c

The "law of supply" functions in labor markets; that is, a higher __________ for labor leads to a higher quantity of labor supplied. a.price b.demand c.supply d.quantity

a