Questions the answers in details

QUESTION 1
Predict how each of the following events will increase or decrease the quantity of oil workers in Texas.
 
New oil-drilling equipment is invented that is cheap and requires few workers to run will, this will  quantity of oil workers in Texas 
Several major companies that do not drill oil open factories in Texas, offering many well-paid jobs outside the oil industry this will  quantity of oil workers in Texas
Government imposes costly new regulations to make oil-drilling a safer job, this will    quantity of oil workers in Texas 

2 points   
QUESTION 2

The diagram above illustrates how demand and supply determine equilibrium in this labor market. The demand curve of those employers who want to hire nurses intersects with the supply curve of those who are qualified and willing to work as nurses at the equilibrium point .
The equilibrium salary is $ . Give a numerical value and exclude the $ sign.

Use the following terms to fill in the blanks below, some terms may be used more than one time, increase,decrease, right, left, shortage, surplus, downward, movement, quantity demanded, derived

If salary increased to $ 75,000 there will be   and if salary decreased to $60,000, there will be .  

A change in the wage or salary will result in a change in the  of labor.
If the wage rate increases, the quantity of labor demanded will  and there will be a   upward along the demand curve.
If the wages and salaries decrease, the quantity of labor demanded will   resulting in a    movement along the demand curve.
Demand for labor is based on the demand for the good or service that is produced, this is called a “    demand.” 
As the demand for the goods and services increases, the demand for labor will   or shift to the   to meet employers production requirements.
As the demand for the goods and services decreases, the demand for labor will   or shift to the   . 
4 points   
QUESTION 3
The table shows the quantity of financial capital that consumers demand at various interest rates and the quantity that credit card firms are willing to supply. 

Interest rate
Qd of financial capital ($billions)
Qs of financial capital ($ billions)
11
800
420
13
700
510
15
600
600
17
550
660
19
500
720
21
480
750

The interest rate at equilibrium is  .
The quantity of financial capital loaned and borrowed at equilibrium is .

Use the following concepts to fill in the blanks below, more, reduce, less than, decrease, increase, surplus, shortage, intertemporal decision making, right, left, 

Above equilibrium quantity demanded would be  than quantity supplied.
As the interest rate rises, consumers will    the quantity that they borrow.
As the interest rate paid on credit card borrowing rises,   firms will be eager to issue credit cards and to encourage customers to use them.
Conversely, if the interest rate on credit cards falls, the quantity of financial capital supplied in the credit card market will   and the quantity demanded will   .
If the interest rate is above the equilibrium level, then a  , of financial capital will arise in this market.If the interest rate is below the equilibrium, then a  of funds occurs in this market. 
People make investment or savings decisions across a period of time, sometimes a long period this is called  .
If their incomes increase, people  savings.
In the technology boom of the late 1990s, many businesses became extremely confident that investments in new technology would have a high rate of return, and their demand for financial capital shifted to the  .
During the 2008 and 2009 Great Recession, demand for financial capital at any given interest rate shifted to the left .
 
 
4 points   
QUESTION 4
In the labor market, what causes a movement along the demand curve?

 A. the demand for the goods and services decreases 
 B. Increased levels of productivity within the workforce
 C. If the wage rate increases,
 D. An increase in the number of companies producing a given product
0.5 points   
QUESTION 5
Select the correct answer. A price floor will usually shift:
 A. demand
 B. supply
 C. both demand and supply
 D. Neither demand nor supply
0.5 points   
QUESTION 6
The demand for labor is called a “derived demand.” Which of the following is not an example of derived demand for labor:
 A. the demand for chefs is dependent on the demand for restaurant meals.

 B. The demand for attorneys is dependent on the demand for legal sevices.

 C. The demand for pharmacists is dependent on the demand for prescription drugs.

 D. All of the above are examples of derived demand
0.5 points   
QUESTION 7
The diagram below illustrates demand and supply in the financial market for credit cards. The horizontal axis of the financial market shows the quantity of money loaned or borrowed in this market. The vertical or price axis shows the rate of return, which in the case of credit card borrowing we can measure with an interest rate.

After the pandemic many students who had dropped out of school will return to school, they will need money to pay for their expenses and hence they will increase their borrowing. What effect will this have on the diagram?
 A. The demand curve shifts right then the interest rate will decrease
 B. The demand curve shifts right then the interest rate will decrease
 C. The demand curve shifts right then the interest rate will increase
 D. The demand curve shifts left then the interest rate will decrease
0.5 points   
QUESTION 8

The diagram below illustrates demand and supply in the financial market for credit cards. The horizontal axis of the financial market shows the quantity of money loaned or borrowed in this market. The vertical or price axis shows the rate of return, which in the case of credit card borrowing we can measure with an interest rate. 

At an interest rate of 13%, 
 A. the quantity of funds credit card borrowers demand decreases to $500 billion, 
 B. the quantity of funds credit card borrowers demand increases to $700 billion,
 C. there is excess supply of funds
 D. None of the above
0.5 points   
QUESTION 9

The figure below illustrates demand and supply in the financial market for credit cards. The horizontal axis of the financial market shows the quantity of money loaned or borrowed in this market. The vertical or price axis shows the rate of return, which in the case of credit card borrowing we can measure with an interest rate. 

During the pandemic incomes decreased so people were saving less,how would this affect the diagram
 A. The demand curve shifts right
 B. The demand curve shifts left
 C. The supply curve shifts right
 D. The supply curve shifts left
0.5 points   
QUESTION 10

The figure below illustrates how demand and supply determine equilibrium in this labor market. The horizontal axis shows the quantity of nurses hired. The vertical axis shows the price for nurses’ labor—that is, how much they are paid. 

Which of the following statements is false?
 A. As the salary for nurses rises, the quantity demanded will fall. 
 B. As the salary for nurses rises, the quantity supplied will rise. 
 C. The equilibrium quantity of nurses is 34,000, and the equilibrium salary is $70,000 per year.

 D. All the statements are true
0.5 points   
QUESTION 11
The figure below illustrates how demand and supply determine equilibrium in this labor market. The horizontal axis shows the quantity of nurses hired. The vertical axis shows the price for nurses’ labor—that is, how much they are paid.

Due to the COVID-19 pandemic the federal government rules require that more nurses be hired to carry out certain medical procedures. How will this affect the market represented in the diagram above?
 A. The demand curve will shift left and wages will decrease
 B. The demand curve will shift right and wages will decrease
 C. The demand curve will shift right and wages will increase
 D. The demand curve will shift left and wages will increase
0.5 points   
QUESTION 12
The figure below illustrates how demand and supply determine equilibrium in this labor market. The horizontal axis shows the quantity of nurses hired. The vertical axis shows the price for nurses’ labor—that is, how much they are paid.

Due to a health pandemic the government puts in place policies that encourage immigration of nurses into the USA. What effect does this have on the nursing market depicted in the diagram above?
 A. The supply curve shifts to the right and the wages decrease
 B. The supply curve shifts to the right and the wages increase
 C. The supply curve shifts to the left and the wages increase
 D. The supply curve shifts to the left and the wages decrease
0.5 points   
QUESTION 13

The table below shows the quantity of financial capital that consumers demand (Qd) at various interest rates and the quantity that credit card firms (often banks) are willing to supply (Qs). 
Interest rate(%)
Qd of financial capital ($billions)
Qs of financial capital ($ billions)
11
800
420
13
700
510
15
600
600
17
550
660
19
500
720
21
480
750

What is the equilibrium rate of interest in this market?
 A. 11
 B. 13
 C. 15
 D. 17
0.5 points   
QUESTION 14
When the economy slows down due to a pandemic many people lose their jobs reducing income, what is most likely to happen to demand for cars?
 A. The demand curve will shift to the right
 B. The demand curve will shift to the left
 C. The quantity demanded decreases

 D. The quantity demanded increases

0.5 points   
QUESTION 15
When the price of steel increases,the

 A. Supply curve of cars shifts left
 B. Supply curve of cars shifts right
 C. Supply curve of steel shifts right
 D. Supply curve of steel shifts left

0.5 points   
QUESTION 16Which of the following changes in the financial market will lead to a decline in interest rates:

 A. a rise in demand

 B. a fall in demand

 C. a rise in supply

 D. None of the above
0.5 points   
QUESTION 17
Which of the following changes in the financial market will lead to an increase in the quantity of loans made and received:

 A. a rise in demand
 B. a fall in demand

 C. a rise in supply

 D. a fall in supply

0.5 points   
QUESTION 18
Which of the following factors will not shift the supply curve of nurses?
 A. The government offers subsidies for nursing schools or nursing students.
 B. Population grows when birth rates exceed death rates.
 C. More women working outside of the home.
 D. A change in salary.
0.5 points   
QUESTION 19
Which of the following factors will shift the demand curve for iPhone 12 Pro to the right?

 A. Apple announces the launch of a newer iPhone
 B. Due to the pandemic many people lose their jobs

 C. Samsung lowers the price of the latest Samsung phone

 D. Apple lowers the price of Apps.
0.5 points   
QUESTION 20
Which of the following statements is not correct as applied in the labor market
 A. The demand curve for labor shows the quantity of labor employers wish to hire at any given salary or wage rate, under the ceteris paribus assumption.
 B. 

 If the wage rate increases, employers will want to hire more employees. The quantity of labor demanded will increase.

 C.  If the wages and salaries decrease, the quantity of labor demanded will increase, resulting in a downward movement along the demand curve.  
 D.  A change in the wage or salary will result in a change in the quantity demanded of labor.
0.5 points   
QUESTION 21
Which of the following statements is true?

 A. When income rises demand for inferior goods will increase

 B. When incomes increase the demand curve for rental apartments which are normal goods will shift to the right

 C. As incomes decrease the demand curve for generic brand groceries which are inferior goods shifts to the right

 D. None of the statements is true
0.5 points   
QUESTION 22
Which of the following statements is true?

 A. When the price of cars decreases the demand curve for gasoline will shift to the left
 B. When price of golf balls increases the demand curve for golf clubs will shift to the right

 C. When the price of notebooks decreases the demand curve for pens will shift to the left

 D. When price of skis decreases the demand curve for ski resort trips will shift to the right
0.5 points   
QUESTION 23
 The figure below illustrates the situation of a city considering a living wage law. For simplicity, we assume that there is no federal minimum wage. The wage appears on the vertical axis, because the wage is the price in the labor market. Before the passage of the living wage law, the equilibrium wage is $10 per hour and the city hires 1,200 workers at this wage. However, a group of concerned citizens persuades the city council to enact a living wage law requiring employers to pay no less than $12 per hour. 

However, a group of concerned citizens persuades the city council to enact a living wage law requiring employers to pay no less than $12 per hour. In response to the higher wage which of the following is not likely to happen? 
 A. 1,600 workers look for jobs with the city.
 B.  At this higher wage, the city, as an employer, is willing to hire only 700 workers. 
 C. At the price floor, there is a shortage of labor    
 D. At the price floor, the quantity supplied exceeds the quantity demanded