Factor Markets Quiz

What are factor markets primarily used for?

• Renting properties

• Investing in stocks

• Exchanging resources

• Buying and selling goods

What is the demand curve in factor markets comprised of?

• Businesses demanding resources

• Households demanding resources

• Consumers demanding resources

• Government demanding resources

What are the three productive resources focused on in factor markets?

• Land, labor, and capital

• Technology, labor, and land

• Goods, services, and capital

• Labor, capital, and goods

What is the payment for land in factor markets called?

• Dividends

• Interest

• Wages

• Rent

What is the term for the demand for a resource that comes from the demand for the product itself?

• Derived demand

• Supply and demand

• Market demand

• Consumer demand

What happens to the equilibrium wage and quantity of workers hired if the demand for workers increases?

• Wage and quantity both decrease

• Wage and quantity both increase

• Wage decreases, quantity increases

• Wage increases, quantity decreases

What is the impact of a minimum wage on a competitive labor market?

• Decreases unemployment

• Increases wages without affecting employment

• No impact on unemployment

• Increases unemployment

What would cause the supply of labor to shift to the left in the labor market?

• Increase in the value of leisure

• Increase in the demand for workers

• Decrease in the working age population

• Decrease in the price of the product

What would cause the demand for workers to decrease in the labor market?

• Decrease in the demand for workers

• Increase in the value of leisure

• Decrease in the working age population

• Increase in the price of the product

What is the term for any amount above the minimum needed to bring a resource into use?

• Economic profit

• Producer surplus

• Consumer surplus

• Economic rent