Suppose the United Automobile Workers union agrees to accept lower wages for members if the automobile manufacturers lower their prices to buyers
Will the UAW's measures usually result in a larger number of cars being sold and hence more jobs for UAW members? A) No, because people only buy new cars when they need them.
B) Not if the price elasticity of demand for new cars turns out to be less than one.
C) Only in the unlikely event the demand for new cars is unit elastic.
D) Probably not, because new car sales depend on advertising.
E) Yes.
E
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An increase in government spending lowers interest rates and increases the rate of investment in new capital
Indicate whether the statement is true or false
Which of the following serves only the best known and heavily traded securities?
A. NYSE B. Multiple regional exchanges C. AMEX D. NASAQ
Assume a firm has the following cost and revenue characteristics at its current level of output: price=$8.00 . average variable cost=$6.00 and average fixed cost =$4.00 . In the long run, the firm
a. Should shut-down as its making a loss of $2 b. Should continue operating as long as it is covering the variable costs of $6 c. Should continue operating as long as it is covering the fixed costs of $4 d. Should not shut down
Opportunity costs exist because
a. there is a price attached to virtually every good or service b. technology is not fixed in the economy c. people have different tastes and preferences d. limited resources cannot satisfy all of the wants in society e. the production possibilities frontier is bowed in with respect to the origin