Suppose a union successfully negotiates a wage rate for its members that is above the competitive wage rate, then
A) employment in the union sector will increase.
B) the union must find a way to make union workers more productive.
C) the union must also negotiate a fringe-benefit package that the membership will like.
D) the union must find a way to ration jobs among the excessive number of workers who wish to work at the negotiated wage.
Answer: D
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If the money price of a resource such as oil falls, then the
A) LAS curve shifts rightward. B) LAS curve shifts leftward. C) SAS curve shifts leftward. D) SAS curve shifts rightward.
If aggregate expenditures exceed GDP in a private closed economy:
A. leakages will exceed injections.
B. planned investment will exceed saving.
C. unplanned investment in inventories will occur.
D. saving will exceed planned investment.
In a static model, one or more explanatory variables affect the dependent variable with a lag.
Answer the following statement true (T) or false (F)
Suppose that the quantity of apples sold increases by 30 percent after the price of pears increases by 15 percent. What is the coefficient of cross elasticity of demand?
A. 3.0. B. 1.5. C. 0.2. D. 2.0.