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Chapter 4 Reading Quiz
1. Which of the following would be an example of derived demand?
- An increased demand for dogs leads to an increased demand for dog groomers
- The invention of the ATM machine leads to lower demand for bank tellers
- Stricter immigration laws lead to a lower supply of labor
- hot weather leads to a higher demand for ice cream
2. The U.S. government requires mechanics to become trained and certified. How does this affect the market for mechanics?
- demand for mechanics increase and supply of mechanics decrease
- demand for mechanics decrease and supply of mechanics increase
- demand for mechanics increase and supply of mechanics increase
- demand for mechanics decrease and supply of mechanics decrease
3. Unemployment occurs when
- the supply of labor exceeds the demand for labor
- the demand for labor equals the supply of labor
- the demand for labor exceeds the supply of labor
- the demand for labor is less than the supply of labor
4. The table below displays the demand and supply schedule for babysitters
What is the equilibrium wage and quantity?
- wage = $18, quantity 80
- wage = $17, quantity = 100
- wage = $15, quantity = 60
- wage = $19, quantity = 80
5. Restrictions on immigration will have what effect on the labor market?
- the labor demand curve will shift right
- the labor supply curve will shift left
- the labor demand curve will shift left
- the labor supply curve will shift right
6. ATM machines and online banking reduce the demand for bank tellers. Technology, in this case, is a(n)
- aid to labor
- complement to labor
- example of derived demand
- substitute for labor
7. Minimum wage is an example of a
- price ceiling
- equilibrium wage
- efficient wage
- price floor
8. Millions of people leave the labor force due to the pandemic. What effect does this have on the labor market?
- the supply of labor increases and wages rise
- the supply of labor decreases and wages rise
- the supply of labor decreases and wages fall
- the supply of labor increases and wages fall
9. A wage that is higher and ensures that workers can afford a basic standard of living is called a(n)
- living wage
- equilibrium wage
- maximum wage
- minimum wage
10. The table below displays the demand and supply schedule for babysitters
If the government sets a minimum wage for babysitters at $19 per hour, this will result in a
- surplus of 140 labor hours
- shortage of 60 labor hours
- surplus of 60 labor hours
- shortage of 80 labor hours
Chapter 4 Reading Quiz
1. Which of the following would be an example of derived demand?
- An increased demand for dogs leads to an increased demand for dog groomers
- The invention of the ATM machine leads to lower demand for bank tellers
- Stricter immigration laws lead to a lower supply of labor
- hot weather leads to a higher demand for ice cream
Answer: A. An increased demand for dogs leads to an increased demand for dog groomers