AP Micro- Unit 5 Review

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

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.

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

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

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

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

In the circular flow model, the product market describes _____

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

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

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