Unions may cause unemployment if:
A. outsiders push wages down.
B. insiders force real wages higher than the market-clearing level.
C. outsiders are subject to minimum-wage legislation.
D. insiders are fired and outsiders are hired.
Ans: B. insiders force real wages higher than the market-clearing level.
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In general, the more resources that are devoted to technological research, the
A) greater is current consumption. B) higher is the unemployment rate. C) faster the PPF shifts outward. D) more the PPF will bow outward.
There is no deadweight loss if the regulatory rule for a natural monopoly
A) is an average cost pricing rule. B) sets price at a level that enables the regulated firm to earn a specified rate of return on its capital. C) is a marginal cost pricing rule. D) prevents the firm from engaging in any form of price discrimination.
Assume a perfectly competitive firm is producing a level of output at which MR < MC. What will happen as the firm moves to its profit-maximizing equilibrium?
A) Marginal revenue will rise. B) Marginal revenue will fall. C) Marginal cost will rise. D) Marginal cost will fall.
Restricted Formulary Hospitals are big purchasers of pharmaceutical products and have to stock many different chemical entities. However, they increasingly do not stock all. Instead, they restrict their formularies to many of the treatments in a therapeutic class but consciously exclude a few. How does this help them negotiate?