AP Micro- Unit 5 Review

Front

If the government establishes an effective minimum wage in a perfectly competitive market for low-wage labor, what will occur?

Back

Employment of low-wage workers will decrease and unemployment will increase.

Front

A monopsony pays _____ & hires ____ than a perfectly competitive firm

Back

less & less

Front

If all other factors remain constant, an increase in the demand for the firms’ product will result in which of the following changes in the labor market? Options: The demand curve for labor will shift to the right. The supply curve for labor will shift to the left. The supply curve for labor will shift to the right. The demand curve for labor will shift to the left.

Back

The demand curve for labor will shift to the right.

Front

If a large number of unskilled workers enter the labor market, which of the following is most likely to occur in the labor market for unskilled workers? Options: The supply curve will shift to the right and the wage rate will decrease. , The supply curve will shift to the left and the wage rate will increase. , The demand curve will shift to the left and the wage rate will decrease. , The demand curve will shift to the right and the wage rate will increase.

Back

The supply curve will shift to the right and the wage rate will decrease.

Front

A profit-maximizing firm will continue to hire workers until the marginal revenue product of labor is equal to the:

Back

marginal resource cost

Front

Which of the following would cause the wage for computer programmers to increase? A decrease in the amount of physical capital per computer programmer, A decrease in the value that computer programmers place on leisure, A minimum wage set below the equilibrium wage in the market for computer programmers, An improvement in the education of computer programmers

Back

An improvement in the education of computer programmers

Front

If the wage rate decreases, which of the following is the most likely outcome? people increase the quantity of labor supplied; firms decrease the quantity of labor demanded, people decrease the quantity of labor supplied; firms increase the quantity of labor demanded, people decrease their leisure and increase their supply of labor, people decide to equalize their leisure and labor usage

Back

people decrease the quantity of labor supplied; firms increase the quantity of labor demanded

Front

The graph shows a(n):

Back

perfectly competitive factor market and firm

Front

Derived demand refers to:

The demand for resources used to make a good or service.

Back

The demand for resources used to make a good or service.

Front

Someone buys a car in exchange for a large amount of money. They have completed an exchange in which part of the circular flow model?

Back

Product Market