ap micro unit 5

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Question

Answer

A higher salary or wage leads to a _______ in the quantity of labor demanded by employers, while a lower salary or wage leads to an _________ in the quantity of labor demanded.

Decrease, Increase

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A higher price for labor leads to a ______ quantity of labor supplied; a lower price leads to a ______ quantity of labor supplied.

Higher, Lower

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The main factors that can shift the supply curve for labor

Number of workers Government policies required education

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The main factors that can shift the demand curve for labor

Quality demand changes Production process changes Government policy

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Characteristics of a Competitive Labor Market

Firms competing to hire labor Many qualified workers “Wage takers” Market demand is determined by summing horizontally the labor demand curves

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Characteristics of Monopoly

One major employer Labor being impossible Labor supply is upward sloping MRC > wage rate - higher wage rate

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The demand for a resource is called _______ because it comes from the demand for the goods and services that are produced by these resources.

Derived deman

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The Fair Labor Standards Act of 1938 is a United States labor law that creates the right to a ____, and "time-and-a-half '' overtime pay when people work over forty hours a week. It also prohibited most employment of minors in "oppressive child labor".

Minimum wage

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The ________ is the lowest hourly pay that can be awarded to workers, also known as a pay floor.

Minimum wage rate

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The federal minimum wage has been at ______ since July 2009 and, according to The Wall Street Journal, starting pay for U.S. workers ranged from $10 per hour to $14 per hour.

$7.25 per hour

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_______ wages are the amount of money received per hour, day, week.

Nominal

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_____ are the purchasing power of the wage.

Real

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Complete monopsonistic power exists when there is ________ in the labor market

One major employer

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______ _______ _______ is the increase in total revenue that results from the use of each additional unit of a variable input

Marginal Revenue Product

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_____ ______ _______ is the marginal resource cost or the cost of hiring the additional resource unit

Marginal resource cost

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______ is the price that employers pay for labor.

Wage

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Hiring Rule for a Profit Max Firm is ______

MRC= MRP

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____ _____ is an organization of workers that negotiates with employers over wages and working conditions.

Labor Union

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Negotiations between unions and firms are sometimes called _______ ________.

Collective bargaining

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18. The Top 3 Larger American Unions are

The National Education Association, The Service Employees International Union, and the American Federation of Teachers.

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19. Occupations in which relatively high percentages of workers belong to unions are the _______ (26.9%), _________(31.3%), _______ (41.7%);

federal, state, and local government

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20. The U.S. government has passed, over the years, several laws to create a ______ ______ balance of power between workers and employers.

More equal

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21. Discrimination occurs in a labor market when workers with the same economic characteristics, such as education, experience, and skills, are _____ ______ _____ because of race, gender, religion, age, or disability status

Paid different amounts

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22. The level of immigration has been ____ ____ ___in recent years, reaching and exceeding the towering levels of the early twentieth century.

High and rising

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23. Immigrants from _______ were more than 90% of the total in the first decade of the twentieth century, but less than 20% of the total by the end of the century.

Europe

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24. There is general agreement that less-educated, lower-income immigrants are a ____ ____ ___ and more-educated, higher-income immigrants are a _____ ______ _____

Net fiscal drain, net fiscal benefit

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25. The overall gains to the U.S. economy from immigration are relatively ______.

Small

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1. A financial contract through which a borrower like a corporation, a city or state, or the federal government agrees to repay the amount that was borrowed and also a rate of interest over a period of time in the future is called _____

Bond

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2. Someone who owns bonds and receives the interest payments is called _______

Bondholder

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3. A mechanism for a saver to deposit funds at a bank and promise to leave them at the bank for a time, in exchange for a higher rate of interest ___ _____ ____

Certificate of deposit

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4. _________ bank account that typically pays little or no interest, but that gives easy access to money, either by writing a check or by using a “debit card”

Checking account

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5. ________ an interest rate calculation on the principal plus the accumulated interest

Compound interest

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6. ______a card that lets the person make purchases, and the cost is immediately deducted from that person’s checking account

Debit card

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7. Investing in a wide range of companies to reduce the level of risk is called

Diversification

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8. A direct payment from a firm to its shareholders is called

Dividend

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9. The monetary value a homeowner would have after selling the house and repaying any outstanding bank loans used to buy the house is called

Equity

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10. An institution, like a bank, that receives money from savers and provides funds to borrowers is called

Financial intermediary

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11. The first sale of shares of stock by a firm to outside investors is called

Initial public offering

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12. _____ refers to how easily money or financial assets can be exchanged for a good or service

Liquidity

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13. A bond issued by cities that wish to borrow is called

Municipal bond

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14. Funds that buy a range of stocks or bonds from different companies, thus allowing an investor an easy way to diversify are called

Mutual fund

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15. A measure of the uncertainty of that project’s profitability is called

Risk

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16. ____ ___ is a bank account that pays an interest rate, but withdrawing money typically requires a trip to the bank or an automatic teller machine

Saving account

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17. People who own at least some shares of stock in a firm are called .

Shareholders

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18. An interest rate calculation only on the principal amount is called

Simple interest

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19. A bond issued by the federal government through the U.S. Department of the Treasury is called

Treasury bonds

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20. Financial investments in new companies that are still relatively small in size, but that have potential to grow substantially are called

Venture capital

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