Suppose the United Auto Workers union obtains a substantial wage increase for auto workers. How will this affect the market for automobiles?
The higher wages will shift the supply of automobiles to the left. As a result, the price of automobiles will rise, and the quantity of automobiles sold will decline.
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If the economy were experiencing a recession, which of the following would Keynes be in favor of?
A. Households should save less and consume more goods and services. B. The government should increase taxes to balance its budget during a recession. C. Businesses should decrease spending on new equipment until the economy improves. D. The government should discourage companies from exporting goods to foreign countries while people at home are unable to buy basic necessities.
Sherry wants to rent an apartment. Although rents are below what she is willing to pay, she cannot find an apartment. Then after a month of searching, she finds an apartment but she has to pay an additional $1,000 to have the locks changed
Sherry has just experienced the effects of ________. A) a rent floor with a black market B) inelastic demand C) a market working efficiently D) a rent ceiling
Nathan does not vote because he feels as he does not have a real choice. To him, "all politicians are exactly the same." Which of the following statements might lend some credence to Nathan's observation?
a. In a representative democracy, politicians must appeal to the median voter if they hope to be successful. b. In a representative democracy, politicians are uniformly graduates of Ivy League schools. c. In a representative democracy, politicians exclusively come from wealthy families. d. In most representative democracies, individuals similar to Nathan do not vote and thus are not represented in the political process.
If $30 is paid for a share of stock and the earning per share is $3, how long will it take for the firm's earnings to add up to the purchase price?
a. 30 years b. 3 years c. 27 years d. 10 years e. 90 years