When you see a commercial on TV asking you to "look for the union label," the union is trying to
A) increase worker productivity.
B) increase the demand for nonunion goods.
C) increase the demand for union goods.
D) decrease the demand for nonunion goods.
C
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Refer to the scenario above. The income per capita of Country 2 in PPP-adjusted dollars is ________
A) $4,236 B) $12,655 C) $6,834 D) $5,985
The greater the interest rate
A) the greater the present value of a sum to be received a year in the future. B) the greater the opportunity cost of another dollar of current consumption. C) the more a dollar invested today will be worth a year from now. D) the lower the discount rate.
Which pitfall to sound economic reasoning is reflected in a person's view that "pharmaceutical and oil companies are price-gouging the consumers"?
A. Faulty definition B. Post hoc fallacy C. Loaded terminology D. Confusing correlation and causation
You have been hired by a data processing firm to provide economic advice. The owner of the firm tells you that the firm's only variable input is the number of data-entry operators. The hourly wage for data-entry operators is $10.00. The marginal revenue product curve for data-entry operators reaches its maximum at three workers with a marginal revenue product of $12.00. What advice would you give this firm?
A. Hire three data-entry operators so as to maximize profits. B. Decrease the wage rate paid to data-entry operators so that their marginal revenue product will decrease. C. Shut down immediately, as the firm is not able to cover all of its variable costs. D. Hire data-entry operators until the marginal revenue product is equal to the wage-which will occur when more than three operators are employed.