Chapter 4 Quiz - Macroeconomics NIVIN
Are market always in equilibrium?
No, but if there is no outside interference, they tend to move towards equilibrium.
Price of leisure-
Wage rate
Financial institutions-
Intermidiaries between savers and borrowers
Value of marginal product-
How much a one-unit increase in an input adds to the firm's revenue.
Intertemporal decision making-
Process of considering whether or not to consume now or consumer more in the futures by saving more now.
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 steel.
Interest rate-
The price of money
Income effect
When wage gets high enough that worker becomes affluent enough to decide to work less and consume more leisure.
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.
Which of the following will NOT result in a rightward shift of the market supply curve for labor?
an increase in labor productivity.
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 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 equal, a ... supply of workers tends to ... real wages.
larger; decrease
The "law of supply" functions in labor markets; that is, a higher ... for labor leads to a higher quantity of labor supplied.
price.
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.
Many states do have ..., which imposes an upper limit on the interest rate that lenders can charge.
usury laws
If the 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
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