In the standard model of a monopoly union bargaining with the firm, it is typically assumed that
A. union leadership disregards the preferences of the rank and file.
B. the union's sole objective is to increase the wage.
C. unions and management secretly negotiate on the behalf of stockholders.
D. unions never lead to an efficiency loss.
E. unions are willing to trade off some amount of employment for higher earnings.
Answer: E
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If the monetary base doubles but the ratios of currency/deposit and reserves/deposits remain the same, then:
a. The money supply doubles. b. The money supply quandrouples. c. The money supply changes by two times the money multiplier. d. The money supply remains unchanged.
What are the relationships among capital, interest rates, and interest income?
What will be an ideal response?
Mutual interdependence means that each firm in an oligopoly
A. depends on the other firms for its markets. B. considers the reactions of its rivals when it determines its pricing policy. C. faces a perfectly inelastic demand for its product. D. depends on the other firms for its inputs.
Suppose a bank repays a $10 million discount loan that it had previously borrowed from the Fed. Illustrate how this affects the balance sheets of the Fed and the banking system
What will be an ideal response?