Intel Corporation, a major manufacturer of microchips, saw the demand for its product drop by 25%. Even though the demand for its product decreased, Intel did not cut the wages of its nonunionized workers. This is an example of
A. employment-at-will.
B. an explicit contract not to cut wages.
C. an implicit or social contract not to cut wages.
D. a relative-wage contract.
Answer: C
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Assume that there is an increased demand in the United States for European wines. If all other factors are held constant, this change will result in
A) an increase in the exchange rate for euros. B) an appreciation of the dollar. C) a movement along the demand curve for euros. D) a decrease in the value of the euro.
When the government increases its demand for loanable funds, it causes the:
A. demand for loanable funds curve to shift to the right. B. demand for loanable funds curve to shift to the left. C. supply of loanable funds curve to shift to the right. D. supply of loanable funds curve to shift to the left.
Horizontal differentiation makes products better for some consumers and worse for others.
Answer the following statement true (T) or false (F)
Assume Cooky and Laundry are roommates. Cooky can cook 8 meals (= M) or do 2 loads of laundry (= L) in a given amount of time. During the same time period, Laundry can cook 6 meals or 4 loads of laundry. Which of the following opportunity cost (OC) values is true?
a) Cooky's OC of 1L = 4M. b) Laundry's OC of 1L = 1.5M. c) Cooky's OC of 1M = 1/4L. d) Laundry's OC of 1M = 2/3L. e) All of the above.