In which of the following U.S. industries is the rate of unionization the highest?
A. Construction.
B. Government.
C. Transportation.
D. Agriculture.
Answer: B
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Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher
When the United States imposes a tariff on a good, the amount of the ________ in U.S. consumer surplus is ________ the amount of the ________ in U.S. producer surplus
A) increase; smaller than; increase B) decrease; larger than; decrease C) decrease; larger than; increase D) decrease; equal to; increase
Expansionary fiscal policy tends to:
A. reduce both U.S. interest rates and U.S. capital inflows. B. increase U.S. interest rates but reduce U.S. capital inflows. C. reduce U.S. interest rates but increase U.S. capital inflows. D. increase both U.S. interest rates and U.S. capital inflows.
If a firm hires lazy employees,
A) it must pay them differently or hard-working employees will engage in moral hazard. B) it must pay them more or hard-working employees will engage in moral hazard. C) it must fire them before their laziness spreads to hard-working employees. D) the lazy employees make hard-working employees look good.