Title: QUIZ: The Labor Market for Influencers
Course: Recommended Resources for AP Micro from FRE > Section: Unit 5: Factor Markets

Q: In the labor market, demand refers to
- businesses that want to hire workers. (That's correct!)
- households that want to work. (That is incorrect.)
- businesses providing workers. (That is incorrect.)
- households providing jobs. (That is incorrect.)
A: businesses that want to hire workers.

Q: In the labor market, supply refers to
- businesses that want to hire workers. (That is incorrect.)
- households that want to work. (That's correct!)
- businesses providing workers. (That is incorrect.)
- households providing jobs. (That is incorrect.)
A: households that want to work.

Q: What happens to wages when there is an increase in the supply of influencers?
- Wages increase. (That is incorrect.)
- Wages decrease. (That's correct!)
- Wages remain constant. (That is incorrect.)
- Wages fluctuate unpredictably. (That is incorrect.)
A: Wages decrease.

Q: What is a key characteristic of a winner-take-all market?
- Equal pay distribution regardless of skill (That is incorrect.)
- Small differences in ability creating large differences in pay (That's correct!)
- Government regulation of wages (That is incorrect.)
- Low competition among participants (That is incorrect.)
A: Small differences in ability creating large differences in pay

Q: What role do barriers to entry play in the influencer labor market?
- High barriers limit the number of influencers. (That is incorrect.)
- Barriers are high because of technical requirements. (That is incorrect.)
- There are very low barriers to entry. (That's correct!)
- Barriers are artificially maintained by existing influencers. (That is incorrect.)
A: There are very low barriers to entry.

Q: Businesses face which of the following when working with influencers?
- Not enough influencers to choose from (That is incorrect.)
- Difficulty calculating return on investment (That's correct!)
- Excessive government regulation (That is incorrect.)
- Stable and predictable algorithms (That is incorrect.)
A: Difficulty calculating return on investment

Q: Why would an increase in the supply of influencers lower the potential wages?
- More influencers in the market means more competition for available sponsorships and brand deals. (That's correct!)
- Fewer influencers in the market means less competition for available sponsored content. (That is incorrect.)
- More influencers in the market drive up the demand for a business’s products. (That is incorrect.)
- More consumers use influencers to find new products and services. (That is incorrect.)
A: More influencers in the market means more competition for available sponsorships and brand deals.

Q: The labor market illustrates the relationship between
- wages and the supply and demand for labor. (That is correct.)
- supply and quantity of businesses. (That is incorrect.)
- demand and the quantity of labor/jobs. (That is incorrect.)
- wages and producer price controls. (That is incorrect.)
A: wages and the supply and demand for labor.

Q: Which of the following is true in a winner-take-all labor market?
- Pay is determined by relatively large differences in skill. (That is incorrect.)
- Pay for a very few is much lower than the average. (That is incorrect.)
- Pay is equal for all participants. (That is incorrect.)
- Pay for a very few is much higher than the average. (That's correct!)
A: Pay for a very few is much higher than the average.

Q: On a labor market graph, equilibrium represents
- the wage and quantity level where the number of job openings is higher than the amount of labor supplied. (That is incorrect.)
- the wage and quantity level where the number of job openings is lower than the amount of labor supplied. (That is incorrect.)
- the wage and quantity level where the number of job openings is equal to the amount of labor supplied. (That's correct!)
- the wage and quantity level that represents the average wage for this type of labor market. (That is incorrect.)
A: the wage and quantity level where the number of job openings is equal to the amount of labor supplied.