If a union is successful in negotiating a wage rate which is above the market clearing wage, then which of the following would not occur?
A) The higher wages attract more workers leading to a shortage of jobs.
B) Management may replace part of the workforce with machinery.
C) To handle the surplus of labor the union will form a closed shop.
D) The union may shift the supply of labor curve by developing methods to ration jobs.
C
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While the budget deficit represents a ________, the public debt represents a ________
A) flow; flow B) stock; flow C) flow; stock D) stock; stock
A ________ system is one in which households pay the same percentage of their incomes in taxes regardless of their income level
A) progressive B) regressive C) proportional D) complementary
Which of the following examples definitely illustrates a depreciation of the U.S. dollar?
A) The dollar exchanges for 120 euros and then exchanges for 100 euros. B) The dollar exchanges for 100 euros and then exchanges for 110 euros. C) The dollar exchanges for 275 euros and then exchanges for 250 yen. D) The dollar exchanges for 250 yen and then exchanges for 275 euros.
In the long run, a firm might experience rising average total costs due to
a. economies of scale. b. diseconomies of scale. c. the law of supply. d. the law of diminishing marginal returns.