Suppose the federal government allows labor unions to act as the sole seller in labor markets, but the government collects an annual $10,000,000 "administrative fee" from each union in this situation
Assuming this fee is not so large that it forces the unions to disband, what is the impact of this fee on the equilibrium wage and employment level in the monopolized labor market? A) Wages and employment decline.
B) Wages increase and employment declines.
C) Employment increases and wages decline.
D) No change in wages or employment levels.
D
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Refer to Figure 13-3. Which of the points in the above graph are possible long-run equilibria?
A) B and D B) A and D C) A and C D) A and B
During the Iraq War, the U.S. government continued to borrow funds and yet the interest rate was steady or slightly declined. What could explain this?
A) The U.S. crowded out private saving. B) The U.S. crowded out private borrowing. C) The supply of loanable funds increased by a greater proportion than demand increased. D) The supply of loanable funds increased by a smaller proportion than demand increased.
The most far-reaching aspect of globalization in the past two decades has been in
a. financial flows. b. export levels. c. import levels. d. human rights advances.
One of the key economic questions is "where should products be produced?"
Indicate whether the statement is true or false