If unions are successful in negotiating a wage higher than the market equilibrium wage, and also guarantee employers that they can hire as many labor hours as they desire per week at the union wage,
A. the quantity of labor demanded will exceed the quantity supplied at the union wage.
B. the quantity of labor demanded will equal the quantity supplied at the union wage.
C. the quantity of labor demanded will fall short of the quantity supplied at the union wage.
D. all workers who join the union will be guaranteed a job.
C. the quantity of labor demanded will fall short of the quantity supplied at the union wage.
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In the foreign exchange market, the demand for dollars increases and the demand curve for dollars shifts rightward if the
A) U.S. interest rate differential increases. B) foreign interest rate rises. C) exchange rate falls. D) expected future exchange rate falls. E) U.S. interest rate falls.
Van, whose utility of wealth curve is shown in the above figure, owns a home that is valued at $100,000. There is a 10 percent chance that the house will be destroyed by hurricane. The value of insurance to Van is
A) $10,000. B) $15,000. C) $20,000. D) $30,000.
Movie theatres offer seniors discounts because
a. Seniors have a more inelastic demand for movie tickets b. Seniors have a more elastic demand for movie tickets c. Seniors have a higher opportunity cost of their time d. Only B&C
Unlike the practice in many other countries, in the United States:
A. the agency responsible for monetary policy is not directly controlled by the government. B. only monetary policy is used to influence the economy, and fiscal policy is not allowed. C. the agency responsible for fiscal policy is not directly controlled by the government. D. only fiscal policy is used to influence the economy, and monetary policy is not allowed.