If a union negotiates a wage greater than the competitive wage, the total union wage bill will necessarily decrease
a. True
b. False
B
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The difference between GNP and GDP is accounted for by:
(a) Depreciation; (b) Net factor income from abroad; (c) Indirect Taxes/subsidies; (d) Transfer Payments.
When medical fee schedules are negotiated by two monopolists—one representing patients and one representing providers—the equilibrium medical fees will:
a. be less than fees determined by patient groups alone. b. be greater than fees determined by provider groups alone. c. depend on the relative bargaining strengths of the two groups negotiating the fee schedule. d. be less than fees determined in a competitive market. e. be greater than fees determined in a competitive market.
The government wishes to reduce he price level by reducing real GDP by $400 billion. Assuming a tax multiplier of 4 and a government spending multiplier of 5, which of the following policy prescriptions would reduce the aggregate demand curve by $400 billion?
A. Decreasing government spending by $400 billion and increasing taxes by $100 billion. B. Decreasing government spending by $160 billion and decreasing taxes by $100 billion. C. Decreasing government spending by $40 billion and decreasing taxes by $40 billion. D. Decreasing government spending by $100 billion and keeping taxes the same.
See the production possibility tables for Marketopia and Econlandia below.MarketopiaEconlandiaCookiesPiesCookiesPies018091012306206603300900Given this information, we know that the opportunity cost of producing pies
A. is higher in Marketopia. B. is the same in both countries. C. is higher in Econlandia. D. cannot be computed without further information.