If a union negotiates and obtains a wage rate above the competitive wage rate,
A. employment in the union sector will increase relative to employment in the nonunion sector.
B. it must find a way to ration jobs among the excessive number of workers who wish to work in the union sector.
C. unemployment will increase in the nonunion sector relative to the union sector.
D. it must find a way to make workers more productive.
Answer: B
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Which institution tends to increase specialization in society?
A) Barter B) Government planning bureaus C) Money D) Price regulation
If the purchasing power of a dollar is greater than the purchasing power of the yen, purchasing power parity would predict that
A) in the short run, interest rates will move to equalize the purchasing power of the dollar and the yen. B) in the long run, exchange rates will move to equalize the purchasing power of the dollar and the yen. C) in the short run, exchange rates will move to equalize the purchasing power of the dollar and the yen. D) in the long run, interest rates will move to equalize the purchasing power of the dollar and the yen.
If the graph shown is displaying a competitive labor market:
A. D would represent the workers' demand for jobs at each wage.
B. Q* would represent the equilibrium wage.
C. P* would represent how many people are employed in the market.
D. Q* would represent the equilibrium number of workers in the market.
A GDP deflator of 112 means:
A. the overall output increased by 12 percent since the base year. B. the production of each good in the economy has increased by 12 percent. C. every price in the economy has gone up by 12 percent. D. the overall price level is 12 percent higher than in the base year.