Week 5 Quiz
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Question 1
If the demand for software engineers __________ slower than does supply, then wages of software engineers will __________.
Selected Answer: 
increases; fall
Answers: increases; remain constant
increases, rise
increases; fall
decreases; fall
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Question 2
Many states do have ____________, which impose an upper limit on the interest rate that lenders can charge.
Selected Answer:
usury laws
Answers: price ceiling laws
usury laws
price floor laws
minimum interest rate
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Question 3
Improvements in the productivity of labor will tend to:
Selected Answer:
increase wages.
Answers: decrease wages.
decrease the supply of labor.
increase wages.
increase the supply of labor.
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Question 4
A straightforward example of a _______________, often used for simplicity, is the interest rate.
Selected Answer:
rate of return
Answers: price ceiling
financial investment
rate of return
price floor
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Question 5
Are markets always in equilibrium?
Selected Answer:
No, but if there is no outside interference, they tend to move toward equilibrium.
Answers: No, they never “settle down” into a stable price and quantity.
No, but if there is no outside interference, they tend to move toward equilibrium.
Yes, because very few things tend to alter supply and demand.
Yes, they are always at the equilibrium point, or very close to it.
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Question 6
When consumers and businesses have greater confidence that they will be able to repay in the future, _______________________.
Selected Answer:
the quantity demanded of financial capital at any given interest rate will shift to the right.
Answers: the quantity demanded of financial capital at any given interest rate will remain unchanged.
the quantity demanded of financial capital at any given interest rate will shift to the left.
the quantity demanded of financial capital at any given interest rate will shift to the right.
the quantity demanded of financial capital at any given interest rate will achieve equilibrium.
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Question 7
Many cooks view butter and margarine to be substitutes. If the price of butter rises, then in the market for margarine:
Selected Answer:
both the equilibrium price and quantity will rise.
Answers: the equilibrium price will fall and the equilibrium quantity will fall.
both the equilibrium price and quantity will rise.
the equilibrium price will rise and the equilibrium quantity will decrease.
the equilibrium price will rise, while the change to equilibrium quantity is indeterminate.
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Question 8
How do apple growers react to the news of medical research findings that suggest that eating apples leads to greater health benefits than were previously known?
Selected Answer:
They increase the quantity of apples supplied.
Answers: They increase the supply of apples.
They increase the quantity of apples supplied.
They decrease the supply of apples.
They decrease the quantity of apples supplied.
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Question 9
The “law of supply” functions in labor markets; that is, a higher __________ for labor leads to a higher quantity of labor supplied.
Selected Answer:
price
Answers:
price
demand
supply
quantity
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Question 10
Whenever there is a shortage at a particular price, the quantity sold at that price will equal:
Selected Answer:
the quantity supplied at that price.
Answers: the quantity demanded at that price.
the quantity supplied minus the quantity demanded.
the quantity supplied at that price.
(quantity demanded plus quantity supplied)/2.