1. Directions
You will read passages on the topic and then answer questions about them. You may find vocabulary at the end of the test. Read the questions carefully before choosing the correct answers.2. Questions of the test
Question 1. What is the law of supply and demand?
A) The law that states that the price of a good or service will tend to rise when there is a high demand for it and a low supply of it, and will tend to fall when there is a low demand for it and a high supply of it
B) The law that states that the price of a good or service will tend to rise when there is a low demand for it and a high supply of it, and will tend to fall when there is a high demand for it and a low supply of it
C) The law that states that the price of a good or service will remain constant regardless of changes in supply or demand
D) The law that states that the price of a good or service will tend to rise when there is a high demand for it and a high supply of it, and will tend to fall when there is a low demand for it and a low supply of it
Question 2. Which of the following is NOT a factor that can affect the functioning of labor markets?
A) The overall level of economic activity
B) The demand for goods and services
C) The supply of workers
D) Government policies
Question 3. Which of the following is NOT a factor that can affect the functioning of labor markets?
A) The overall level of economic activity
B) The demand for goods and services
C) The supply of workers
D) Government policies
Question 4. Which of the following statements about labor markets is NOT true?
A) Labor markets refer to the supply and demand for labor within an economy
B) Labor markets are influenced by the overall level of economic activity, technological change, government policies, and global economic conditions
C) The law of supply and demand helps to explain why wages tend to rise during periods of economic growth and fall during economic downturns
D) Labor markets are not influenced by the demand for goods and services
Question 5. Which of the following is NOT a way in which governments can affect the functioning of labor markets?
A) Setting minimum wage laws
B) Providing unemployment insurance
C) Implementing policies that promote economic growth
D) Implementing policies that decrease the supply of workers
