A union will be more successful at forming when the firm's labor demand curve is inelastic because under these conditions the union organizers can "promise"
A. large wage gains with minimal employment losses.
B. low union dues.
C. large wage gains and large employment gains.
D. small wage gains and minimal employment losses.
E. small wage losses but large employment gains.
Answer: A
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What best explains why real GDP per person is always driven to the subsistence level in the classical model?
A) Population growth occurs, increasing the supply of labor. B) Population growth occurs, shifting the labor supply curve leftward. C) Growth is not possible so the demand for labor never changes. D) Investment in capital decreases labor demand, decreasing the demand for labor.
Consumption expenditure includes
a. the production of consumption goods not sold and held in inventory. b. the purchase of consumption goods made domestically but consumed by foreigners. c. purchase of goods and services by local government. d. services, durables, and non-durable goods.
When the absolute price elasticity of demand equals 0.67, demand is
A) elastic. B) unit-elastic. C) inelastic. D) undetermined without more information.
A merger between firms that compete in the same market is called a:
a. horizontal merger. b. vertical merger. c. conglomerate merger. d. monopoly.