Chapter 4: Q8 (page 104)
Which of the following changes in the financial market will lead to an increase in the quantity of loans made and received:
a. rise in demand
b. a fall in demand
c. a rise in supply
d. a fall in supply
Rise in demand and rise in supply leads to decline in interest rates in financial market.
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If the government imposed a federal interest rate ceiling of 20% on all loans, who would gain and who would lose?
Predict how each of the following events will raise or lower the equilibrium wage and quantity of oil workers in Texas. In each case, sketch a demand and supply diagram to illustrate your answer.
a. The price of oil rises.
b. New oil-drilling equipment is invented that is cheap and requires few workers to run.
c. Several major companies that do not drill oil open factories in Texas, offering many well-paid jobs outside the oil industry.
d. Government imposes costly new regulations to make oil-drilling a safer job.
Name some factors that can cause a shift in the
supply curve in labor markets.
Select the correct answer. A price ceiling will usually shift:
a. demand
b. supply
c. both
d. neither
Other than the demand for labor, what would be
another example of a “derived demand?”
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