macroeconomics chapter 4
In 2010, Americans had about _____________ outstanding in credit card debts not paid on time
$900 billion
The imposition of a price ceiling on a market often results in:
a shortage
If the demand for software engineers __________ slower than does supply, then wages of software engineers will __________.
increases; fall
In the United States, a typical credit card interest rate ranges from ______________ per year.
12% to 18%
The United States has approximately ___________ credit card holders.
180 million
Are markets always in equilibrium?
No, but if there is no outside interference, they tend to move toward equilibrium.
Steel mill wage costs increase by 18 percent over a year. What is the likely economic effect on the market for steel?
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.
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.
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.
If Congress and President imposed a law that gas stations could not charge more than $1.00/gallon for gas what impact would this have on the gasoline market?
a shortage
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
Which of the following will result in an upward left movement along the market demand curve for labor and cause a reduction in quantity demanded for labor?
an increase in the wage rate
Many cooks view butter and margarine to be substitutes. If the price of butter rises, then in the market for margarine:
both the equilibrium price and quantity will rise.
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
Improvements in the productivity of labor will tend to:
increase wages.
Other things being equal, a __________ supply of workers tends to __________ real wages.
larger; decrease
Since Baltimore passed the first _______________ in 1994, several dozen cities enacted similar laws in the late 1990s and into the 2000s.
living wage law
Many economists believe that the trend toward greater wage inequality across the U.S. economy was primarily caused by _____________.
new technologies
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
A straightforward example of a _______________, often used for simplicity, is the interest rate.
rate of return
A more efficient means of processing algae to produce an anticancer drug is discovered. As a result, the supply curve for the drug will:
shift to the right, decreasing the price of the drug
As the __________ substitute for low-skill labor becomes available, the demand curve for low-skill labor will shift to the left.
technology
As the _____________ complement for high-skill labor becomes cheaper, the demand curve for high-skill labor will shift to the right.
technology
Whenever there is a surplus at a particular price, the quantity sold at that price will equal:
the quantity demanded at that price.
Whenever there is a shortage at a particular price, the quantity sold at that price will equal:
the quantity supplied at that price.
Many states do have ____________, which impose an upper limit on the interest rate that lenders can charge.
usury laws
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 __________.
will increase
The "law of supply" functions in labor markets; that is, a higher __________ for labor leads to a higher quantity of labor supplied.
price