Jim is negotiating a contract for a labor union. The union wants to increase members' real wages by 4 percent. The inflation rate is predicted to be 7 percent. To attain the union's goal, Jim needs to negotiate a raise in the nominal
a. wage of 4 percent
b. wage of 7 percent
c. wage of 11 percent
d. rate of 3 percent
e. rate of 28 percent
C
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Soran is risk averse. If her wealth rises by $100, her total utility increases by 300. If her wealth increases, her total utility will decrease
A) by more than 300. B) by less than 300. C) by 300. D) by some amount that cannot be determined without more information.
If the firm is using only one variable input, explain why the condition W = MRPL is thesame condition as P = MC
What will be an ideal response?
The major factor contributing to the appreciation of the dollar between 1995 to 2000 was:
A) decrease in capital inflows. B) increase in capital inflows. C) slow GDP growth in the U.S. D) none of the above.
On Naomi’s pig farm, Naomi hires all the labor used, grows all the grain fed to the pigs, and owns the barn. The costs used to calculate the total cost curve include
A. only the cost of labor. B. only the cost of labor and the cost of grain, which is completely consumed in the period in which it is grown. C. only the variable cost of growing grain. D. the cost of labor, the cost of growing grain, and the opportunity cost of the barn.