AP Micro- Unit 5 Review

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

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

What are the four main parts of the circular flow diagram? Options: Product Market, Stock Market, Factor Market, Fish Market; Product Market, House Market, Factor Market, Good Market; Factor Market, Product Market, Households, Firms; Factor Market, households, Stock Market, super market

Back

Factor Market, Product Market, Households, Firms

Front

What do businesses provide for consumers according to the circular flow model?

Back

goods and services

Front

What do households provide to the resource market? (Options: land, labor, capital, money, people, income)

Back

land, labor, capital

Front

In the circular flow model, the product market describes _____

Back

stores that sell goods and services to households

Front

When individuals work for businesses, what resource are they providing?

Back

Labor

Front

The main difference between the product market and the resource market (aka factor market) is

Back

Individuals demand in the product market but firms demand in the resource market

Front

An increase in the demand for new houses will most likely cause which of the following? Increase in the supply of houses, Decrease in the price of nails, Decrease in the price of houses, Increase in the demand for plumbers

Back

Increase in the demand for plumbers