In a basic model of wage and employment determination with a monopoly union, the monopoly union stipulates the wage. The firm then responds by choosing an employment level that maximizes
A. profit.
B. the wage.
C. strike duration.
D. output.
E. labor costs.
Answer: A
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A decrease in demand and an increase in supply will
A. affect price in an indeterminate way and decrease the equilibrium quantity. B. decrease price and affect the equilibrium quantity in an indeterminate way. C. decrease price and increase the equilibrium quantity. D. increase price and affect the equilibrium quantity in an indeterminate way.
The demand for money curve shows the relationship between the quantity of money demanded and
A) real GDP. B) the inflation rate. C) the real interest rate. D) the price level. E) the nominal interest rate.
Market clearing prices can be volatile in a market with inelastic demand and inelastic supply
Indicate whether the statement is true or false
In every economy people vie for the economy's rationing device, a process called
A) competition. B) entrepreneurship. C) marginal benefit. D) positive economics.