Suppose there is a competitive market for retail workers at a large shopping mall that is large enough to constitute its own labour market. The labour demand curve is QD = 1000 - 20(w). The labour supply curve is QS = 400 + 40(w). Suppose that a union now successfully organizes the workers at this mall and obtains a wage rate of $11 (but does not affect the demand curve). One result is
A) a decrease in employment of 60 workers.
B) a decrease in employment of 20 workers.
C) an increase in employment of 20 workers.
D) an increase in employment of 40 workers.
E) a decrease in employment of 40 workers.
Ans: C) an increase in employment of 20 workers.
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Fiscal policy in the United States is hampered by its particularly long ________ lag
A) data B) recognition C) legislative D) transmission E) effectiveness
Considering the information in the table shown, Jack's total utility from consuming bundle D would be:
This table shows the different combinations of goods that Jack can consume, given that his income to spend on these two items is $10.
A. 1,160.
B. 1,300.
C. 950.
D. 2,220.
President George W. Bush, who favored a smaller government sector,
A. believed we should increase G to eliminate a recessionary gap. B. believed we should raise taxes to eliminate an inflationary gap. C. favored an active fiscal policy just as well as those who favor a larger government sector. D. argued against the use of an active fiscal policy.