AP Microeconomics Flashcards: Changes in Factor Demand and Factor Supply
Written by AP Content Team, Verified for 2026 AP Exams, Last updated: May 2026
Review key ideas with interactive flashcards. This set includes 10 cards to help you master important concepts.
Term: Determinants of Labor Supply
These are factors that cause the labor supply curve to shift, including immigration, education, age distribution, preferences for leisure, and cultural expectations.
Card 1 of 10
All Flashcards (10)
Term: Determinants of Labor Supply
These are factors that cause the labor supply curve to shift, including immigration, education, age distribution, preferences for leisure, and cultural expectations.
What causes the labor supply curve to shift?
Changes in the determinants of labor supply, such as immigration, education, working conditions, and preferences for leisure, cause the labor supply curve to shift.
Identify two key determinants that shift the labor demand curve.
Two key determinants of labor demand are the output price of the good being produced and the productivity of the worker.
List three determinants that can shift the labor supply curve.
Three determinants that can shift the labor supply curve are immigration, cultural expectations, and the age distribution of the population.
If the price of a firm's final product increases, how does this affect its labor demand curve?
Since the output price is a determinant of labor demand, an increase in the product's price will cause the firm's labor demand curve to shift.
If new technology significantly increases worker productivity, what is the effect on the labor demand curve?
An increase in worker productivity is a change in a determinant of labor demand, which will cause the labor demand curve to shift.
How do non-monetary factors like working conditions and cultural expectations influence the labor market?
Working conditions and cultural expectations are determinants of labor supply, and changes in these factors will cause the labor supply curve to shift.
A country experiences a large wave of immigration. How does this impact the labor supply curve?
Immigration is a determinant of labor supply, so a large wave of immigration will cause the labor supply curve to shift.
According to the principles of factor markets, how do firms and workers respond to new incentives or constraints?
Firms and factors (like workers) respond to changes in incentives and constraints, which is reflected by shifts in the factor demand and supply curves.
What causes the labor demand curve to shift?
Changes in the determinants of labor demand, such as the output price and the productivity of the worker, cause the labor demand curve to shift.