Econ ch 4/5 Quiz Flashcards
The Law of Demand states that as price____quantity demanded increases
Decreases
The law of supply states that as price____ quantity supplied increases
Increases
Are markets always in equilibrium
No, but if there is no outside interference they tend to move towards equilibrium
True or false, A change in the price will result in a change in the quantity supplied, ceteris paribus
True
True or false in the Labor Market, employees are demanders and employers are suppliers
False
In the labor market, all of the following except for___ contribute to the “price”
Input costs for the good sold
When there is excess supply of labor, all of the following are FALSE except
Everyone who wants a job wont be able to get a job
True or false, The number of companies within an industry will impact the DEMAND for labor
True
The federal min wage is currently____ an hour. Approximately___ percent of American workers are paid the minimum wage as their hourly rate
$7.25, 1.5%
All of the following will cause a decrease in the demand for labor in the fast food industry EXCEPT for
Increased demand for fast food now that everyone has returned to work/school/play
In contrast to goods and services market____ are rare in labor markets because rules that prevent people from earning income are not politically popular
Price ceilings
True or false, Households can be BOTH demanders and suppliers in the Finical Market
True
An upper limit on the interest rate that lenders can charge borrowers is known as
Usury law
In the financial market a surplus will occur when
the interest rate is above equilibrium
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
