Effective labor unions have an impact on prices of goods their workers produce.
Answer the following statement true (T) or false (F)
True
One way firms can protect their profits in the face of rising union wages is to raise product prices.
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Someone who values a lottery at its expected value is
a. A risk lover b. Risk neutral c. Risk averse d. most likely to play a lottery
The tax cut of 2009 had little significant effect on consumer spending because it
a. was not large enough. b. was perceived as temporary. c. came too early in the year. d. was subtracted from 2008 taxes due.
If trade corresponds to the Heckscher-Ohlin theory, which of the following is most likely to happen in the long run after a labor-abundant country engages in free trade?
A. The rate of unemployment in the country is most likely to increase. B. The capital to labor ratio used in production in the export sector will increase. C. The rental rates of capital will increase but the wage rates will decline. D. The total output in the economy will decline.
In the long run in a perfectly competitive industry
A) opportunity costs are negligible. B) economic profits will be zero. C) some firms will be experiencing economic losses. D) only entrepreneurs will earn more than their opportunity costs.