Unions might support a higher minimum wage because:
A. their constitutions obligate them to do so.
B. they feel a higher minimum wage will lower labor's tax payments for welfare programs.
C. a higher minimum wage makes less-skilled workers less substitutable for union workers.
D. the minimum wage is better targeted than are alternative income-maintenance programs.
Answer: C
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Entry and exit continue in monopolistic competition until the remaining firms are
A) earning an economic profit. B) incurring an economic loss. C) earning less than a normal profit. D) earning zero economic profit. E) producing the normal amount of product differentiation.
During a certain year, the nominal interest rate was 8 percent, the real interest rate was 3 percent, and the CPI was 176.7 at the beginning of the year. The CPI at the end of the year was
a. 196.1. b. 185.5. c. 168.3. d. 159.2.
Which of the following statements is false?
A) The Dow Jones Industrial Average went down by 40 percent during the decade of the 1930s. B) Based on data from the period between 1926 and 2004, the probability of having a positive return on an investment in the stocks contained in the Dow Jones Industrial Average would have been 97.1 percent if the stocks had been held for 10 years. C) When reading the stock market page of a newspaper, if the column marked "Div." is blank, it means that the company does not currently pay out dividends. D) A stock that yields 4 percent is better than a stock that yields 5 percent, all else being the same.
Risk premium is the ________ amount that a ________ person would pay to avoid ________
A) maximum; risk-averse; taking a risk B) maximum; risk-neutral; losing everything C) minimum; risk-averse; taking a risk D) minimum; risk-loving; losing everything