Suppose a union successfully negotiates a wage rate for its members that is above the competitive wage rate, then
A) there will be downward pressure on the wage rate until equilibrium is established.
B) right-to-work laws become effective.
C) there is a shortage of jobs.
D) there is excess demand for labor.
Answer: C
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For allocative efficiency to hold
A) average total cost is minimized in production. B) average variable cost is minimized in production. C) price must equal the marginal cost of the last unit produced. D) price must equal marginal revenue of the last unit sold.
Refer to above figure. What is the amount of efficiency loss resulting from imposition of the tariff?
What will be an ideal response?
Because policies in the United States were too expansionary from 1965 through 1973, the U.S. suffered
A) demand-pull inflation. B) cost-push inflation, as workers sought higher wages in order to keep up with inflation. C) both demand-pull and cost-push inflation. D) neither demand-pull nor cost-push inflation.
A corporate bond sold in 2000 with a face value of $10,000, a $100 coupon, and a maturity date in 2010
A. will pay the bondholder $100 a year every year from 2000 to 2010 and will also pay the bondholder $9,000 in 2010. B. will pay the bondholder $100 a year every year from 2000 to 2010 and will also pay the bondholder $10,000 in 2010. C. requires the bondholder to pay $100 a year every year from 2000 to 2010 and will pay the bondholder $10,000 in 2010. D. requires the bondholder to pay $100 in 2000 only and will pay the bondholder $10,000 in 2010.