Question 1

Migration is when
A) foreign persons enter a country.
B) foreign persons leave a country.
C) citizens move to another country.
D) citizens move within their own country.
E) foreign persons move within their own country.

Accepted Answer

Migration refers to the movement of people from one place to another. In this case, option D is the best choice because it specifies that citizens move within their own country, which is a common form of migration.

Question 2

The following graph represents Zendar’s labor market. Use this graph to answer the following questions: 
-What is the equilibrium number of workers in Zendar?
A) 20
B) 25
C) 30
D) 35
E) 40

Accepted Answer

The answer of The following graph represents Zendar’s labor market....

Question 3

Use the following table,which shows the supply and demand schedules for workers in the country of Hovian,to answer the following questions:
 
-There will be a surplus of ________ workers at a wage of ________.
A) 75; $10
B) 100; $20
C) 135; $40
D) 40; $40
E) 50; $30

Accepted Answer

The answer of Use the following table,which shows the supply...

Question 4

More job opportunities open up in the South,prompting labor supply curves in northern states to ________ and in southern states to ________.
A) remain unchanged; shift right
B) shift right; shift right
C) shift left; shift right
D) shift left; remain unchanged
E) shift left; shift left

Accepted Answer

When more job opportunities open up in the South, people from the northern states are more likely to move to the South for better job prospects, causing the labor supply curve to shift left (decrease) in the northern states. On the other hand, the increase in job opportunities in the South will attract more workers, causing the labor supply curve to shift right (increase) in the southern states. Therefore, the correct option is C, where the labor supply curve shifts left in the North and right in the South.

Question 5

There will be a ________ of workers when the wage is ________ the equilibrium wage.
A) surplus; at
B) surplus; below
C) surplus; above
D) shortage; above
E) shortage; at

Accepted Answer

The answer of There will be a ________ of workers...

Question 6

Use the following table,which shows the supply and demand schedules for workers in the country of Hovian,to answer the following questions:
 
-The supply schedule indicates that the labor supply curve is
A) backward-bending.
B) upward-sloping.
C) downward-sloping.
D) vertical.
E) horizontal.

Accepted Answer

The answer of Use the following table,which shows the supply...

Question 7

There will be a ________ of workers when the wage is ________ the equilibrium wage.
A) surplus; at
B) shortage; below
C) shortage; above
D) shortage; at
E) surplus; below

Accepted Answer

A shortage of workers occurs when the wage is below the equilibrium wage because at that price, demand for workers exceeds supply. This leads to employers being willing to hire more workers, but there are not enough available, creating a shortage.

Question 8

The minimum wage is increased to $15.This higher wage might ________ labor force participation,shifting the labor supply curve to the ________.
A) decrease; right
B) increase; left
C) decrease; left
D) increase; right
E) not change; right

Accepted Answer

Increasing the minimum wage to $15 could make entering the workforce more attractive to people who were previously not working or looking for work, thus potentially increasing labor force participation. This increase in labor force participation would shift the labor supply curve to the right, as more people are willing to work at the higher wage.

Question 9

Use the following table,which shows the supply and demand schedules for workers in the country of Hovian,to answer the following questions:
 
-If the wage is set temporarily at $15,it will need to ________ to restore equilibrium.
A) decrease to zero
B) increase to $35
C) fall
D) increase
E) remain unchanged

Accepted Answer

At a wage rate of $15, the quantity of workers supplied is 105, while the quantity of workers demanded is only 85. This creates a surplus of workers, which puts downward pressure on wages. Thus, the wage would need to increase to restore equilibrium between supply and demand.

Question 10

The government lowers the retirement age to 55.We would expect to see the labor supply curve
A) stay the same.
B) shift left.
C) stay the same but move upward.
D) stay the same but move downward.
E) shift right.

Accepted Answer

Lowering the retirement age to 55 means that more workers would opt for retirement, leading to a decrease in the labor supply. Therefore, the labor supply curve would shift left.

Question 11

Ummal travels back in time to deposit $100 in a high-interest-bearing savings account.When she returns to the present,she is a billionaire.We can expect Ummal to work ________ hours because of the ________ effect.
A) more; substitution
B) more; income
C) fewer; substitution
D) more; labor-leisure
E) fewer; income

Accepted Answer

The income effect suggests that as people become wealthier (in this case, Ummal becoming a billionaire), they can afford to work less and enjoy more leisure time, hence "fewer" hours due to the "income" effect.

Question 12

Use the following table,which shows the supply and demand schedules for workers in the country of Hovian,to answer the following questions:
 
-If the wage is temporarily set at $25,it will need to ________ to restore equilibrium.
A) rise
B) fall
C) remain unchanged
D) decrease to zero
E) increase to $30

Accepted Answer

If the wage is set above the equilibrium level, there will be a surplus of labor (unemployment), as the quantity of labor supplied by workers exceeds the quantity of labor demanded by employers. To restore equilibrium, the wage would need to fall to balance supply and demand.

Question 13

After World War II,social norms relating to women's participation in the labor force relaxed and women were more likely to be employed outside the home.We would expect to see the labor supply curve
A) stay the same.
B) shift left.
C) stay the same but move upward.
D) stay the same but move downward.
E) shift right.

Accepted Answer

When social norms relating to women's participation in the labor force relaxed and women were more likely to be employed outside the home, it indicates an increase in the number of people willing to work. This results in a rightward shift of the labor supply curve, as there are more workers available at each wage level.

Question 14

Use the following table,which shows the supply and demand schedules for workers in the country of Hovian,to answer the following questions:
 
-Wages above ________ will cause a ________.
A) $10; surplus
B) $50; shortage
C) $20; surplus
D) $30; shortage
E) $40; shortage

Accepted Answer

Looking at the supply and demand schedules, at a wage of $20, there will be a surplus of 8,000 workers. However, at a wage of $10, there will be a shortage of 6,000 workers. At any wages above $20, the surplus will continue to increase. Therefore, the best answer is C.

Question 15

The citizens of Robbinsville notice that their friends and family in the neighboring city of Deville are earning higher wages.We would expect the labor supply in Robbinsville ________ and the labor supply in Deville to ________.
A) shift right; shift right
B) shift left; shift left
C) remain unchanged; shift right
D) shift left; shift right
E) shift right; shift left

Accepted Answer

When people in Robbinsville notice that their friends and family in Deville are earning higher wages, it is natural for some of them to move to Deville in search of better-paying jobs. This would result in a decrease in the labor supply in Robbinsville (shift left) and an increase in the labor supply in Deville (shift right). Therefore, choice D is the best answer.

Question 16

Immigration is when
A) foreign persons enter another country.
B) foreign persons leave another country.
C) citizens move to another country.
D) citizens move within their own country.
E) foreign persons move within their own country.

Accepted Answer

Immigration specifically refers to foreign persons entering another country, as opposed to emigration which refers to foreign persons leaving their country of origin.

Question 17

The following graph represents Zendar’s labor market. Use this graph to answer the following questions: 
-At a wage of ________,there is a ________ of ________ workers.
A) $10; surplus; 30
B) $40; shortage; 30
C) $10; shortage; 30
D) $35; shortage; 20
E) $25; surplus; 10

Accepted Answer

At a wage of $10, there is a shortage of 30 workers, as the number of workers demanded (80) is greater than the number of workers supplied (50). Option B is incorrect because at a wage of $40 there is a surplus of 30 workers, as the number of workers supplied (80) is greater than the number demanded (50). Option A is incorrect because at a wage of $10 there is a shortage of 30 workers, not a surplus. Option D is incorrect because at a wage of $35 there is a shortage of 20 workers, not a surplus. Option E is incorrect because at a wage of $25 there is a surplus of 10 workers, not a shortage.

Question 18

The following graph represents Zendar’s labor market. Use this graph to answer the following questions: 
-To have no surplus or shortage of workers in Zendar,what does the wage rate have to be?
A) $5
B) $10
C) $15
D) $20
E) $25

Accepted Answer

The answer of The following graph represents Zendar’s labor market....

Question 19

Use the following table,which shows the supply and demand schedules for workers in the country of Hovian,to answer the following questions:
 
-The equilibrium wage is
A) $10.
B) $20.
C) $30.
D) $40.
E) $50.

Accepted Answer

The equilibrium wage is where the quantity supplied of workers equals the quantity demanded of workers. In this case, that occurs at a wage of $20 per hour. At that wage, 6 million workers are willing to work and 6 million workers are demanded by employers. This is the point where the market clears and there is no excess supply or demand.

Question 20

The labor market is said to be in equilibrium when
A) everyone who wants to work is supplying his or her labor.
B) the number of workers is equal to the number of jobs available at a specific wage.
C) firms are unwilling to hire more workers.
D) workers keep their hours constant.
E) the number of available workers is increasing.

Accepted Answer

In an equilibrium labor market, the number of workers willing to work at a given wage is equal to the number of available jobs. This means that there is no excess supply of labor or excess demand for labor. The labor market is said to be balanced, and both workers and firms are content with the prevailing wage rate.

Quiz 14: The Demand and Supply of Resources

Migration is when

The following graph represents Zendar’s labor market. Use this graph to answer the following questions: -What is the equilibrium number of workers in Zendar?

Use the following table,which shows the supply and demand schedules for workers in the country of Hovian,to answer the following questions: -There will be a surplus of workers at a wage of .

More job opportunities open up in the South,prompting labor supply curves in northern states to and in southern states to .

There will be a of workers when the wage is the equilibrium wage.

Use the following table,which shows the supply and demand schedules for workers in the country of Hovian,to answer the following questions: -The supply schedule indicates that the labor supply curve is

There will be a of workers when the wage is the equilibrium wage.

The minimum wage is increased to $15.This higher wage might labor force participation,shifting the labor supply curve to the .

Use the following table,which shows the supply and demand schedules for workers in the country of Hovian,to answer the following questions: -If the wage is set temporarily at $15,it will need to ________ to restore equilibrium.

The government lowers the retirement age to 55.We would expect to see the labor supply curve

Ummal travels back in time to deposit $100 in a high-interest-bearing savings account.When she returns to the present,she is a billionaire.We can expect Ummal to work hours because of the effect.

Use the following table,which shows the supply and demand schedules for workers in the country of Hovian,to answer the following questions: -If the wage is temporarily set at $25,it will need to ________ to restore equilibrium.

After World War II,social norms relating to women's participation in the labor force relaxed and women were more likely to be employed outside the home.We would expect to see the labor supply curve

Use the following table,which shows the supply and demand schedules for workers in the country of Hovian,to answer the following questions: -Wages above will cause a .

The citizens of Robbinsville notice that their friends and family in the neighboring city of Deville are earning higher wages.We would expect the labor supply in Robbinsville and the labor supply in Deville to .

Immigration is when

The following graph represents Zendar’s labor market. Use this graph to answer the following questions: -At a wage of ,there is a of workers.

The following graph represents Zendar’s labor market. Use this graph to answer the following questions: -To have no surplus or shortage of workers in Zendar,what does the wage rate have to be?

Use the following table,which shows the supply and demand schedules for workers in the country of Hovian,to answer the following questions: -The equilibrium wage is

The labor market is said to be in equilibrium when

Quiz 14: The Demand and Supply of Resources

Migration is when

The following graph represents Zendar’s labor market. Use this graph to answer the following questions: -What is the equilibrium number of workers in Zendar?

Use the following table,which shows the supply and demand schedules for workers in the country of Hovian,to answer the following questions: -There will be a surplus of ________ workers at a wage of ________.

More job opportunities open up in the South,prompting labor supply curves in northern states to ________ and in southern states to ________.

There will be a ________ of workers when the wage is ________ the equilibrium wage.

Use the following table,which shows the supply and demand schedules for workers in the country of Hovian,to answer the following questions: -The supply schedule indicates that the labor supply curve is

There will be a ________ of workers when the wage is ________ the equilibrium wage.

The minimum wage is increased to $15.This higher wage might ________ labor force participation,shifting the labor supply curve to the ________.

Use the following table,which shows the supply and demand schedules for workers in the country of Hovian,to answer the following questions: -If the wage is set temporarily at $15,it will need to ________ to restore equilibrium.

The government lowers the retirement age to 55.We would expect to see the labor supply curve

Ummal travels back in time to deposit $100 in a high-interest-bearing savings account.When she returns to the present,she is a billionaire.We can expect Ummal to work ________ hours because of the ________ effect.

Use the following table,which shows the supply and demand schedules for workers in the country of Hovian,to answer the following questions: -If the wage is temporarily set at $25,it will need to ________ to restore equilibrium.

After World War II,social norms relating to women's participation in the labor force relaxed and women were more likely to be employed outside the home.We would expect to see the labor supply curve

Use the following table,which shows the supply and demand schedules for workers in the country of Hovian,to answer the following questions: -Wages above ________ will cause a ________.

The citizens of Robbinsville notice that their friends and family in the neighboring city of Deville are earning higher wages.We would expect the labor supply in Robbinsville ________ and the labor supply in Deville to ________.

Immigration is when

The following graph represents Zendar’s labor market. Use this graph to answer the following questions: -At a wage of ________,there is a ________ of ________ workers.

The following graph represents Zendar’s labor market. Use this graph to answer the following questions: -To have no surplus or shortage of workers in Zendar,what does the wage rate have to be?

Use the following table,which shows the supply and demand schedules for workers in the country of Hovian,to answer the following questions: -The equilibrium wage is

The labor market is said to be in equilibrium when

Use the following table,which shows the supply and demand schedules for workers in the country of Hovian,to answer the following questions: -There will be a surplus of workers at a wage of .

More job opportunities open up in the South,prompting labor supply curves in northern states to and in southern states to .

There will be a of workers when the wage is the equilibrium wage.

There will be a of workers when the wage is the equilibrium wage.

The minimum wage is increased to $15.This higher wage might labor force participation,shifting the labor supply curve to the .

Ummal travels back in time to deposit $100 in a high-interest-bearing savings account.When she returns to the present,she is a billionaire.We can expect Ummal to work hours because of the effect.

Use the following table,which shows the supply and demand schedules for workers in the country of Hovian,to answer the following questions: -Wages above will cause a .

The citizens of Robbinsville notice that their friends and family in the neighboring city of Deville are earning higher wages.We would expect the labor supply in Robbinsville and the labor supply in Deville to .

The following graph represents Zendar’s labor market. Use this graph to answer the following questions: -At a wage of ,there is a of workers.