A union representative observed that if the union members' wages were increased by some proportion, the workers would eventually suffer a greater than proportional decline in employment. This statement could best be explained if:
A. The new wages are to take effect immediately
B. Union labor can easily be replaced with capital
C. Union labor is an insignificant portion of the total cost of production
D. The demand for the final product the workers produce is relatively inelastic
B. Union labor can easily be replaced with capital
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In addition to lowering the discount rate to increase the money supply, the Fed could also
A) purchase bonds on the open market and lower reserve requirements. B) sell bonds on the open market and lower reserve requirements. C) purchase bonds on the open market and raise reserve requirements. D) sell bonds on the open market and raise reserve requirements.
Is there any case for legalizing drugs?
What will be an ideal response?
Figure 4-3 indicates the demand (D) and supply (S) for the rental housing market in a large city. If the government imposed a price ceiling of a, which of the following would be true?
a. The quantity of rental housing demanded would be t. b. The quantity of rental housing supplied would be r. c. There would be a shortage of rental housing. d. All of the above are true.
Refer to the information provided in Figure 15.4 below to answer the question(s) that follow. 
Figure 15.4 Refer to Figure 15.4. Assume The Hand Made Shirt Shop has fixed costs of $90 and is a monopolistically competitive firm. To maximize profits in the short run, the firm should produce ________ personalized sweatshirts.
A. 0 B. 50 C. 70 D. 75