1.What is the "price" commonly called in the labor market? Are households demanders or suppliers in the goods market? Are firms demanders or suppliers in the goods market?

2.Name some factors that can cause a shift in the demand curve in labor markets. What does an increase in demand for labor do for the wage?

3.Name some factors that can cause a shift in the supply curve in labor markets. What does a increase in the supply of labor do to the wage?

4.What determines the demand for labor for a firm operating in a perfectly competitive output market? Are workers in a competitive market paid more, less, or equal to the work value they provide?

5.Why do employers have a natural advantage in bargaining with employees?

6.What is a labor union? How does the presence of a labor union change negotiations between employers and workers?

7.Would you expect the presence of labor unions to lead to higher or lower pay for worker-members? Would you expect a higher or lower quantity of workers hired by those employers? Explain briefly. What is the long-term trend in American union membership?

8.What is a monopsony? How does monopsony affect the equilibrium wage and employment levels?

9.How is the poverty rate calculated? What is the poverty line? What is the difference between poverty and income inequality?

10.How does the poverty trap discourage people from working? How can the effect of the poverty trap be reduced?

11.What is the safety net? Briefly explain the differences between TANF, the earned income tax credit, SNAP, and Medicaid.

12.What are some reasons why a certain degree of inequality of income would be expected in a market economy? Identify some public policies that can reduce the level of economic inequality.Describe how a push for economic equality might reduce incentives to work and produce output. Then describe how a push for economic inequality might not have such effects.

13.What are the most common ways for start-up firms to raise financial capital? Why can firms not just use their own profits for financial capital, with no need for outside investors?

14.Why are banks more willing to lend to well-established firms? Why are banks called "financial intermediaries"?

15.What is a bond? What does a share of stock represent? When do firms receive money from a stock sale in their firm and when do they not receive money?

16.Why should a financial investor care about diversification?