Suppose a union successfully negotiates for its members a wage rate that is above the competitive wage rate, then
A) there will be a surplus of jobs.
B) antitrust laws become effective.
C) there will be downward pressure on the wage rate until equilibrium is established.
D) there will be an excess supply of labor.
Answer: D
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Which of the following would cause a movement up (or leftward) along the demand curve for European autos in the United States?
A. An increase in the price of American autos B. A decrease in the price of American autos C. An increase in income in the United States D. An increase in the price of European cars
Minimum-wage laws affect all workers
a. True b. False Indicate whether the statement is true or false
An approach that can be taken by someone directly involved in a transaction to solve the problems caused by information asymmetry is:
A. statistical discrimination. B. proofing. C. mandating that information be shared. D. All of these are ways to solve information asymmetry.
If the forward rate is greater than the spot rate, what are markets signaling about their expectations for the future spot rates for the home currency?
What will be an ideal response?