The experience of the Teamsters in the late 1970s and early 1980s suggests that
a. there are few restraints on the ability of a strong union to increase the wages of its members.
b. product market competition with goods made from (or services provided by) nonunion labor significantly limits the ability of a union to get increased wages for its members.
c. higher wages tend to stimulate aggregate demand, which makes it easier for a union to gain still higher wages.
d. wages are established by the relative skill of union and management negotiators, independent of market conditions.
B
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The National Environmental Protection Act (NEPA) of 1969
a. calls for Environmental Impact Statements (EIS) on major legislative proposals b. coordinates environmental tasks among federal agencies c. guides all environmental policy formulation in the United States d. all of the above e. (c) and (d) only
Individuals who face greater risks
a. are more likely to purchase insurance b. are less likely to purchase insurance c. are neither more nor less likely to purchase insurance d. are risk neutral
If the elasticity of demand coefficient for a good is one-sixth (in absolute terms), we know:
a. that for every 1% increase in quantity, there will be a 6% increase in price. b. that for every 1% increase in quantity, there will be a 6% decrease in price. c. that for every 6% increase in quantity, there will be a 1% increase in price. d. that for every 6% increase in quantity, there will be a 1% decrease in price.
The Fed does not try to reduce frictional unemployment because it
a. is easier to eliminate with fiscal policy b. is not a serious social problem c. has microeconomic solutions d. signals a strong economy e. rarely exceeds a 1 percent rate