Microeconomics chapter 4 study guide

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

AN INCREASE IN THE WAGE RATE

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

BOTH THE EQUILIBRIUM PRICE AND QUANTITY WILL RISE

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

AN INCREASE IN LABOR PRODUCTIVITY

Improvements in the productivity of labor will tend to:

INCREASE WAGES

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.

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

$900 billion

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

The "law of supply" functions in labor markets; that is a higher _________ for labor leads to a higher quantity of labor supplied.

Price

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

TECHNOLOGY

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.

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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

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Chart

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