If the goal of the union is to maximize member income, then
A) a wage rate will be set in the inelastic portion of the demand curve.
B) a wage rate will be set at the point at which the elasticity of demand equals 1 and marginal revenue is positive.
C) a wage rate will be set at the point at which marginal revenue equal zero.
D) the supply of labor must be inelastic.
C
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The slope of the indifference curve is referred to as
A) the price ratio. B) the marginal tradeoff rate. C) the marginal rate of consumption. D) the marginal rate of substitution.
Suppose that medical researchers discover a new drug which slows the aging process allowing the average life span in the United States to increase to 95 years of age. The lifecycle hypothesis suggests that
A) consumption spending would increase since lifetime income increases. B) consumption spending would increase since estimates of permanent income would increase. C) consumption spending would decrease since savings would rise to provide income for the longer retirement periods. D) None of the above is correct since predicted future annual incomes may not change.
Recessions are periods of declining economic activity
a. True b. False Indicate whether the statement is true or false
The first bankers were
A) sheriffs. B) goldsmiths. C) clergy. D) innkeepers. E) economists.