Micro_lecture_3

What is market equilibrium?

• The point where quantity supplied equals quantity demanded

• The point where quantity supplied exceeds quantity demanded

• The point where demand exceeds supply

• The point where prices are fixed

In labor markets, who are the suppliers of labor?

• Firms

• Job seekers (individuals)

• Government agencies

• Consumers

What is a price ceiling?

• A minimum price set by the government

• A maximum price set by the government

• A price determined by market forces

• A fixed price for all goods

Which of the following is an example of a price floor?

• Rent control

• Minimum wage

• Sales tax

• Price gouging laws

What happens when a price ceiling is set below the equilibrium price?

• Surplus occurs

• Shortage occurs

• Market stabilizes

• No effect on the market

What is derived demand in labor markets?

• Demand for labor based on personal preference

• Demand for labor based on the demand for goods and services produced

• Demand for labor that is independent of product demand

• Demand for labor that fluctuates seasonally

Which factor can cause a rightward shift in the demand curve for labor?

• Decrease in consumer demand for a product

• Increase in technology that complements labor

• Increase in required education levels

• Decrease in the number of firms in an industry

What effect does an increase in the minimum wage typically have on employment levels?

• Increases employment levels significantly

• Decreases employment levels or causes layoffs

• Has no effect on employment levels

• Increases job openings only in certain sectors

If the salary of nurses increases above equilibrium, what occurs in the labor market?

• Excess supply (surplus)

• Excess demand (shortage)

• No change in employment levels

• Immediate hiring of more nurses

What is one consequence of rent control policies?

• Increased quality of rental properties

• Shortages of available rental units

• Higher rental prices overall

• Increased construction of new apartments