Describe the two basic strategies of unions in increasing wage rates for their members
Increasing demand or decreasing supply of workers would increase the wages for members of a union. Featherbedding, licensing requirements, long apprenticeships are among some of the tactics to accomplish this.
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XYZ Gadget Company is currently considering which investment projects it should undertake. The following list of projects along with the estimated rate of return of each project is presented to the executive management team:Project A (8.5%)Project B (7%)Project C (6%)Project D (11%)Project E (5.5%)The current interest rate in the loanable funds market is 5%. However, if an increase in government borrowing pushes the interest rate to 7.5%, we would expect the company to discontinue investment plans for all but ________ of its planned projects.
A. two B. three C. four D. one
Moral hazard is a
a. Pre-contractual problem b. Post contractual problem c. Post firing problem d. None of the above
Suppose that in a perfectly competitive market, firms are making an economic profit. In the long run, we know for sure that
a. some firms will leave the market b. the market price will rise c. the market supply curve will shift to the left d. economic profit will become zero e. production will be less than short-run production
Macroeconomics is the study of
a. individual decision makers. b. international trade. c. economy-wide phenomena. d. markets for large products.