Discuss the impact of unions on relative wages (that is, compare the wages of union workers with those of nonunion workers).
What will be an ideal response?
As a result of union efforts to limit the supply of labor in certain industries, excluded workers have had to move to nonunion industries. The effect of these movements has been to raise wages in unionized industries and lower wages in nonunionized industries. There is a general consensus that unions have increased the relative wages of unionized workers by 15 to 20 percent.
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U.S. Gross Domestic Product (GDP) does NOT include which of the following?
A) the value of goods produced in a foreign country by U.S. owned firms B) the purchase of all final goods and services by U.S. households C) U.S. exports to other countries D) business investment in the United States
Which of the following is true?
i. When the world price of a good is lower than the price that balances domestic supply and demand, a country gains from exporting the good. ii. Compared to a no-trade situation, in a market with imports, consumer surplus is larger. iii. Quotas raise the domestic price of imported goods. A) only i B) only ii C) only iii D) i and ii E) ii and iii
If the level of output produced by the firms in a perfectly competitive market has no effect on the prices of the inputs used by the firms, the market supply curve will be flatter than the supply curve for an individual firm in the market
Indicate whether the statement is true or false
Which of the following conditions is true for a nation operating at a point lying inside its production possibilities curve?
a. The nation is experiencing a technological breakthrough in one of its key industries. b. The nation is clearly utilizing its resources efficiently. c. The nation is producing the maximum output that can be produced with a limited quantity of resources. d. The nation is not utilizing its resources efficiently. e. The nation is producing the maximum output that can be produced with its unlimited quantity of resources.