Chapter 4

Law of demand in labor markets-

• Higher salary or wage (price) in the labor market --> decrease

  in the quantity of labor demanded by employers.

• Higher salary or wage (price) in the labor market --> increase

  in the quantity of labor demanded by employers.

• Lower salary or wage (price)--> increase in the quantity of

  labor demanded.

• Lower salary or wage (price)--> decrease in the quantity of

  labor demanded.

Law of supply labor markets:

• Higher price for labor -->higher quantity of labor supplied.

• Higher price for labor -->lower quantity of labor supplied.

• Lower price for labor -->lower quantity supplied.

• Lower price for labor -->higher quantity supplied.

At the equilibrium wage, employers can find workers, and

workers can find jobs.

• True
• False

Factors that can shift the demand curve for labor:

• Demand for output

• Technology

• Education and Training

• Government Regulations

• Number of Companies

Factors that can shift the supply curve of labor:

• Number of Workers

• Required Education

• Government Policies

Demand and Supply in Financial Markets; savings=

• supply of financial capital

• demand for financial capital

Demand and Supply in Financial Markets; borrowing=

• supply of financial capital

• demand for financial capital

economic resources measured in terms of money

• Financial capital

• Interest Rate

• Usury Laws

the “price” of borrowing in the financial market; a rate of return on an investment.

• Financial capital

• Interest Rate

• Usury Laws

laws that impose an upper limit on the interest rate

that lenders can charge

• Financial capital

• Interest Rate

• Usury Laws