Economics: quiz 5

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

Other things being equal, a __ supply of workers tends to __ real wages.

Larger; decrease

The labor __ curve(s) will shift __ if there is an increase in productivity or an increase in the demand for the final product.

Demand; right

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

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

Technology

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

The quantity supplied at that price

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 producing steel, which shifts the supply curve of steel to the left, thereby increasing the price of steel.

How do apple growers react to the news of medical research findings that suggest that eating apples leads to greater health benefits than were previously known?

They increase the quantity of apples supplied

Laws that impose an upper limit on the interest rate that lenders can change are known as:

Usury laws

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

New technologies