In order to increase sales the firm can
a. Increase the reference price for the product
b. Decrease prices
c. Differentiate their product
d. All of the above
d
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Economic models come in the form of
a. three-dimensional objects b. all of the following c. words d. diagrams e. mathematical equations
Which school of thought argues that because people anticipate the consequences of announced government policy and incorporate these anticipated consequences into their decision making, they end up undermining government policy?
a. neo-Keynesian b. Keynesian c. monetarist d. supply-side e. rational expectations
Economic theory
a. is a deliberate simplification of factual relationships. b. seeks to disprove a hypothesis. c. is based mainly on assumptions. d. seeks to prove political ideals.
Which of the following is a reason why the union wage gap might underestimate the actual effect unions have on wages?
A. Unions typically attract the most productive workers to the application pool. B. The union wage gap can be overestimated but never underestimated. C. Nonunion firms may pay higher wages in order to prevent its workers from unionizing. D. Nonunion jobs will have excess labor available to them because firms will restrict entry into union jobs, and competition for this excess labor competes down the observed nonunion wage. E. Unions target high-paying firms.