AP®︎ Microeconomics: Topic 5.2 Flashcards

Master key terms and definitions for Topic 5.2 of AP Microeconomics – Changes in Factor Demand and Factor Supply to help you prep for quizzes and the AP exam.

0%
6 cards total
6 not started
0 learning
0 almost done
0 mastered
Term

Factor Market Equilibrium

Definition

The wage and employment level where quantity of labor supplied equals quantity demanded.

1 / 6
Factor Market Equilibrium
Not Started

The wage and employment level where quantity of labor supplied equals quantity demanded.

PRD-4.B
Labor Surplus and Labor Shortage
Not Started

Surplus: wages above equilibrium create unemployment; shortage: wages below equilibrium create unfilled jobs.

PRD-4.B
Substitute and Complementary Inputs
Not Started

Cheaper substitutes raise demand for the other input; costlier complements reduce demand for both.

PRD-4.BPRD-4.B.1
Labor Supply and Labor Demand
Not Started

Workers offer labor at different wages, while firms hire labor at different wages.

PRD-4.B
Determinants of Labor Demand
Not Started

Labor demand is derived from product demand and shifts with output price, productivity, and input prices.

PRD-4.BPRD-4.B.1
Determinants of Labor Supply
Not Started

Labor supply shifts with worker availability, training, regulations, alternatives, leisure preferences, demographics, and culture.

PRD-4.BPRD-4.B.2