If a union successfully restricts the supply of labor to the firm but the union has no effect on the demand for labor, then the
A) wage increases and there is no change in employment.
B) wage increases and employment increases.
C) wage increases and employment decreases.
D) wage increases and there is an unambiguous effect on employment.
C
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If the real interest rate rises,
A) the quantity of loanable funds demanded decreases. B) the demand for loanable funds curve shifts leftward. C) the demand for loanable funds curve shifts rightward. D) the quantity of loanable funds demanded increases. E) there is is movement down along the demand for loanable funds curve.
Four propane delivery firms have a tacit agreement to charge a service fee of $50 in addition to $5 per gallon of propane. If the firms' cost of propane increases and one of the four firms advertises that it will increase the service fee to $75 and raise the cost of a gallon of propane to $5.50 next month, this is an example of ________.
A) a preannouncement B) price leadership C) a meet-the-competition clause D) a precommitment
If marginal revenue is less than marginal cost, the firm should
A) raise price. B) raise marginal revenue. C) increase its rate of output. D) decrease its rate of output.
Deposits in savings accounts are included in:
A. M1. B. M2. C. both M1 and M2. D. neither M1 nor M2.