If four quick oil change service companies agree to reduce the number of cars they service each month in an effort to raise the price for the service, this is an example of ________.
A) market division
B) output restrictions
C) bid suppression
D) resale price maintenance
B) output restrictions
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In the case of leisure, the substitution effect implies that:
A) when the price of leisure increases, people will work more. B) when the price of leisure increases, people will work less and relax more. C) if people tend to work more and relax less, the price of leisure increases. D) if people tend to work more and relax less, the price of leisure decreases.
The tradeoff for monetary policy represented by the Phillips curve is
a. lower inflation for lower output. b. lower inflation for higher unemployment. c. lower inflation for higher employment. d. higher expected inflation for higher output. e. none of the above.
One reason that economists encourage free trade is that
A) it encourages a more rapid spread of technology. B) it allows us to exploit the workers of less developed countries. C) we can sell more goods. D) it increases our capital stock.
Consider the above figure, which displays the situation faced by a union employed by a firm with the labor demand curve D
This union has total membership of Q3 workers, but its single wage setting goal is to maximize wages for the Q1 members with the most seniority. If the union managers accomplish this goal, what occurs? A) All of the union members will be employed at the wage rate W3. B) All of the union members will be employed at the wage rate W1. C) The senior members of the union will receive a wage equal to W3, but Q3 union members will be unemployed. D) The select group of senior union members will have work and receive a wage of W3, but Q3 -Q1 union members will not be employed by the firm.