1. Suppose that the risks of working in a hospital during the pandemic caused many workers to reconsider applying for hospital jobs.

What will happen to the supply of labor and the wage in this market?

The supply of labor will increase, and the wage will decrease.

The supply of labor will increase, and the wage will increase.

The supply of labor will decrease, and the wage will increase.

The supply of labor will decrease, and the wage will decrease.

2. What is a reason for sellers in a monopoly market to have a great deal of power over price?

There are many sellers in the market.

Their buyers have perfect information about the product.

There are few barriers to entry or exit.

Their products have no close substitutes.

3. Select the example which is a government failure, and not simply a market failure.

A principal-agent problem occurs while politicians are designing new regulations to help prevent asymmetric information in the housing market.

The government implements policies to minimize the harm of false advertising and require disclosure of information about product safety.

A socially desirable good or service is not supplied by private firms because it is not considered profitable.

The nation's major infrastructure of highways, airports, waterways, and urban transit services are public goods financed by taxes collected from individuals and businesses.

4. The creation of new products would best be classified as a key activity of which type of resource?

Financial

Natural

Entrepreneurial

Capital