Shifting Resource Markets

Increase in demand for microprocessors leads to a(n) _____________ in demand for microprocessor assemblers.

• Increase. This causes wage to increase and quantity to decrease.

• Increase. This causes wage to increase and quantity to increase.

• Decrease. This causes wage to increase and quantity to decrease.

• Decrease. This causes wage to decrease and quantity to decrease.

Increase in the price for plastic piping causes the demand for copper piping to _____________________.

• Increase. Causing quantity to increase and wage to increase.

• Increase. Cause quantity to decrease and wage to decrease.

• Decrease. Causing quantity to increase and wage to increase.

• Decrease. Causing quantity to increase and wage to decrease.

3D printing technology allows for half of the amount of resources to produce the same product.

• Increases the demand for 3d printers.

• Increases the supply for 3d printers.

• Decreases the supply for 3d Printers.

• Decreases the demand for 3d printers.

Free public college provides more qualifications to workers. What will happen in the labor market for minimum wage workers.

• Supply would decrease. Causing wage to increase and quantity to decrease.

• Supply would increase. Causing wage to decrease and quantity to increase.

• Demand would increase. Causing wage to decrease and quantity to increase.

• Demand would decrease. Causing wage to increase and quantity to decrease.

Factor Markets determine how

• Many items to produce

• many workers to hire

• Wage to be paid

• Price to charge for products

In a perfectly competitive labor market, an increase in an effective minimum wage will result in:

• an increase in the supply of workers 
• a decrease in the supply of workers 
• a decrease in the demand for workers 
• fewer workers being hired 

Assume that firms sell their output in a perfectly competitive product market and hire labor in a perfectly competitive labor market. 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? 

• The demand curve for labor will shift to the right. 
• The supply curve for labor will shift to the right. 
• The supply curve for labor will shift to the left. 
• The demand curve for labor will shift to the left. 

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? 

• 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 right and the wage rate will increase. 
• The demand curve will shift to the left and the wage rate will decrease.