Which of the following is a TRUE statement about monopoly and perfect competition?
A) Price is always higher and output higher under monopoly than under perfect competition.
B) Because costs do not depend on market structure, price is usually higher and output is always lower under monopoly than perfect competition.
C) If there are substantial economies of scale, price may be lower and output greater under monopoly than under perfect competition.
D) If there are substantial economies of scale, price may be lower and output greater under monopoly than under perfect competition, and price may be below marginal cost instead of equal to marginal cost.
C
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Which of the following equations correctly represents nominal exchange rate?
A) Nominal exchange rate = units of foreign currency/1 unit of domestic currency B) Nominal exchange rate = 1 unit of domestic currency/100 units of foreign currency C) Nominal exchange rate = 100 units of domestic currency/1 unit of foreign currency D) Nominal exchange rate = units of foreign currency/100 unit of domestic currency
Which of the following about corporations is TRUE?
A) The cost of capital and labor is high relative to that paid by a proprietorship. B) Profits are taxed only once as the owners' income. C) The owners' entire wealth is at risk. D) Corporations' profits are taxed independently of their owners' incomes.
The variable used to measure economic growth is
A) the growth of the money supply. B) the trade surplus. C) the growth in per capita real GDP. D) the number of new jobs created.
________ is the process by which representatives from a union and from management negotiate a mutually agreeable contract specifying wages, employee benefits, and working conditions
a. Binding arbitration b. A strike c. Mediation d. Collective bargaining