Chapter 4: Q13 (page 104)
What is the “price” commonly called in the labor
market?
Price in Labor Market is 'Wages or Salaries' paid by firms & received by workers.
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In the labor market, what causes a movement along the supply curve? What causes a shift in the supply curve?
Predict how each of the following economic changes will affect the equilibrium price and quantity in the financial market for home loans. Sketch a demand and supply diagram to support your answers.
a. The number of people at the most common ages for home-buying increases.
b. People gain confidence that the economy is growing and that their jobs are secure.
c. Banks that have made home loans find that a larger number of people than they expected are not repaying those loans.
d. Because of a threat of a war, people become uncertain about their economic future.
e. The overall level of saving in the economy diminishes.
f. The federal government changes its bank regulations in a way that makes it cheaper and easier for banks to make home loans.
In the financial market, what causes a movement along the supply curve? What causes a shift in the supply curve?
Suppose the U.S. economy began to grow more rapidly than other countries in the world. What would be the likely impact on U.S. financial markets as part of the global economy?
Would usury laws help or hinder resolution of a shortage in financial markets?
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