Econ 102 - Principles of Macroeconomics » Spring 2022 » Ch 4 Reading Quiz

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Question #1
Which of the following would be an example of derived demand?
A.   Stricter immigration laws lead to a lower supply of labor
B.   An increased demand for dogs leads to an increased demand for dog groomers
C.   hot weather leads to a higher demand for ice cream
D.   The invention of the ATM machine leads to lower demand for bank tellers
Question #2
The U.S. government requires mechanics to become trained and certified. How does this affect the market for mechanics?
A.   demand for mechanics increase and supply of mechanics decrease
B.   demand for mechanics decrease and supply of mechanics increase
C.   demand for mechanics decrease and supply of mechanics decrease
D.   demand for mechanics increase and supply of mechanics increase
Question #3
Unemployment occurs when
A.   the demand for labor equals the supply of labor
B.   the demand for labor is less than the supply of labor
C.   the demand for labor exceeds the supply of labor
D.   the supply of labor exceeds the demand for labor
Question #4
Restrictions on immigration will have what effect on the labor market?
A.   the labor demand curve will shift right
B.   the labor supply curve will shift right
C.   the labor demand curve will shift left
D.   the labor supply curve will shift left
Question #5
ATM machines and online banking reduce the demand for bank tellers. Technology, in this case, is a(n)
A.   aid to labor
B.   example of derived demand
C.   substitute for labor
D.   complement to labor
Question #6
Minimum wage is an example of a
A.   price ceiling
B.   equilibrium wage
C.   price floor
D.   efficient wage
Question #7
Millions of people leave the labor force due to the pandemic. What effect does this have on the labor market?
A.   the supply of labor increases and wages fall
B.   the supply of labor increases and wages rise
C.   the supply of labor decreases and wages fall
D.   the supply of labor decreases and wages rise
Question #8
A wage that is higher and ensures that workers can afford a basic standard of living is called a(n)
A.   maximum wage
B.   minimum wage
C.   living wage
D.   equilibrium wage

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