An increase in the percentage of the labor force that is unionized will cause average wages for all workers to rise because
a. union labor is more productive.
b. profit levels are lowered to increase wages.
c. strike threats promote wage increases.
d. This is a trick question because greater unionization does not imply higher average wages.
D
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What does a firm's LRAC curve show? How is it related to the firm's short-run ATC curves?
What will be an ideal response?
If the required reserve ratio is .10, demand deposits are $200 million, and total reserves are $40 million, then excess reserves are
A) $20 million. B) $40 million. C) $400 million. D) $2,000 million.
If price is above the equilibrium price, then there will be:
A. excess demand. B. both excess supply and excess demand. C. excess supply. D. neither excess supply nor excess demand.
Which of the following is not consistent with a minimum wage that is set above the equilibrium wage?
A. Some workers will end up with higher wages. B. Some workers will end up unemployed. C. A labor surplus will result. D. There will be no unemployment.