Session:4 Labor and Financial Markets
Self-Check Questions
Principles of Macroeconomics 3e | Leadership Development – Micro-Learning Session
Rice University 2020 | Michael Laverty, Colorado State University Global Chris Littel, North Carolina State University| https://openstax.org/details/books/principles-macroeconomics-3e
7. Which of the following changes in the financial market will lead to a decline in interest rates:
- a rise in demand
- a fall in demand
- a rise in supply
- a fall in supply
8. 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
- a fall in demand
- a rise in supply
- a fall in supply
9. Identify the most accurate statement. A price floor will have the largest effect if it is set:
- substantially above the equilibrium price
- slightly above the equilibrium price
- slightly below the equilibrium price
- substantially below the equilibrium price
Sketch all four of these possibilities on a demand and supply diagram to illustrate your answer.
10. A price ceiling will have the largest effect:
- substantially below the equilibrium price
- slightly below the equilibrium price
- substantially above the equilibrium price
- slightly above the equilibrium price
Sketch all four of these possibilities on a demand and supply diagram to illustrate your answer.
11. Select the correct answer. A price floor will usually shift:
- demand
- supply
- both
- neither
Illustrate your answer with a diagram.
12. Select the correct answer. A price ceiling will usually shift:
- demand
- supply
- both
- neither