When a union successfully raises the wages of its members, it will also
a. increase total productivity, which must rise in proportion to the wage rate.
b. encourage employers to find a substitute for the union labor.
c. raise the wages of nonunion workers.
d. increase the share of income allocated to labor as opposed to capital.
B
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If a manufacturer shuts down in the short run, it must be true that before the shutdown, at all positive output levels,
a. average total cost was less than average variable cost b. fixed cost was greater than total revenue c. variable cost was greater than total revenue d. profit was zero e. total cost plus total revenue was less than profit
Frictional unemployment is the result of
a. not enough jobs for everyone to be employed. b. unemployed workers' skills not matching those needed for the available jobs. c. a decline in the demand for labor, such as during a recession. d. imperfect information and temporary periods of unemployment while workers are changing jobs.
Relative to explicit price fixing, with implicit price fixing:
A. firms will find it more difficult to figure out why the price leader has set the price that it has. B. the reasons for the price leader's pricing strategy will be more clear and less ambiguous. C. firms face a higher risk of prosecution for antitrust violations. D. consumers will pay higher prices.
Refer to the information provided in Figure 26.5 below to answer the question(s) that follow.
Figure 26.5Refer to Figure 26.5. As a result of ________, the equilibrium interest rate increases and the equilibrium output level decreases.
A. a decrease in government spending B. an increase in the price level C. an increase in government spending D. a decrease in the price level