microeconomics ch 4

above the equilibrium wage and is paid in order to provide workers with an incentive to perform more productively.

An "efficiency wage" describes a wage rate that is

technology

As the ________ substitute for low-skill labor becomes available, the demand for low-skill labor will decrease.

There are 6,000 looking for an office clerk job, and 4,000 are hired.

Figure HW4-1 shows a labor market for office clerks. If all of the firms decided to pay an efficiency wage at $12, how many workers are looking for an office clerk job and how many of them are hired?

This minimum wage is nonbinding because the shortage at $7.25 will push the wage up to $10.

Figure HW4-1 shows a labor market for office clerks. If the government imposes a minimum wage of $7.25 to this market, which of the following statement is true?

At the equilibrium, wage is $10 and 5,000 office clerks are employed.

Figure HW4-1 shows a labor market for office clerks. What is the equilibrium in this market?

between work and leisure.

Gabriel often faces a tradeoff between time working as a model and time practicing Yoga at home. In economics, this example illustrates the tradeoff

U.S. citizens and American entities

Which of the following is the top holder of the U.S. public debt?

Households' demand for goods and services

Which of the following ultimately create jobs?

Consumers and businesses have greater confidence that they will be able to repay their loan in the future.

Which of the following will shift the demand to the right in a financial market?

Households save more money in their retirement account.

Which of the following will shift the supply to the right in a financial market?

increase.

If the demand for software engineers increases more than the increase in supply, then wages of software engineers will _______.

increase wages.

Improvements in the productivity of labor will tend to:

Financial capitals

In the financial markets, what is being trade?

the demand for labor is derived from the demand for other goods.

Labor markets are different from most other markets because

wage

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

crowding-out

The _____________ effect refers to the theory that when the government borrows money to finance debts, it drives interest rates up, thus choking off private investments.

Households who apply for a bank loan to buy a car.

Which of the following is on the demand side in a financial market?

They can lower the price.

What would happen in the competitive market if producers found that they over produced the products?

A roller coaster ride

Which of the following is NOT an example of an intertemporal decision?

The demand for video game designers comes from the demand for video games.

Which of the following is an example of derived demand?