According to the economic theory of labor markets, if unions are successful in raising wages, with no accompanying increase in labor productivity, then which of the following is true?
A. The quantity of labor demanded by profit-maximizing firms will decline.
B. The quantity of labor demanded by profit-maximizing firms will increase.
C. The quantity of labor supplied by workers will decline.
D. There will be a shortage of labor in the unionized labor market.
Answer: A
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Using the figure as a guide, which of the following is FALSE with respect to profit maximization and the monopolist?
A) A monopolist (like any other firm) will select an output rate at which marginal revenue is equal to marginal cost, at the intersection of the marginal revenue curve and the marginal cost curve. B) The monopolist will produce quantity Qm and charge a price of Pm. C) When compared to a competitive situation, consumers pay a higher price to the monopolist, and consequently are forced to purchase more of a product as price varies directly with quantity demanded. D) Profits are the positive difference between total revenues and total costs.
The capital gains tax cut enacted in 2003 will hinder capital formation
a. True b. False Indicate whether the statement is true or false
Suppose the banking system currently has $300 billion in reserves, the reserve requirement is 5 percent, and excess reserves are $30 billion. What is the level of loans?
a. $270 billion
b. $5,400 billion
c. $6,000 billion
d. $5,100 billion
When different regions of a country produce different goods,
a. the production possibilities curve shifts to the left. b. the country becomes worse off. c. the principle of comparative advantage has been breached. d. the country becomes better off if the regions are pursuing their comparative advantages.