If a union negotiated a wage above the market equilibrium wage, we would find
A) a surplus of laborers at the negotiated wage.
B) a shortage of laborers at the negotiated wage.
C) higher efficiency of labor at the negotiated wage.
D) lower worker productivity at the negotiated wage.
A
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If nations such as Germany, Japan, and the United States prohibited international trade in automobiles, a likely effect would be that
a. the price effect would become a more significant consideration for each firm that makes automobiles. b. the excess of price over marginal cost would become less pronounced in the automobile market. c. all countries would become better off. d. automobile producers in the U.S. would collude to produce a large number of cars.
The dominant firm in an oligopoly changes its prices, and then its competitors do likewise. This is an example of ______.
a. price leadership b. tying c. price discrimination d. merging
Adding a time trend can make an explanatory variable more significant if:
A. the dependent and independent variables have similar kinds of trends, but movement in the independent variable about its trend line causes movement in the dependent variable away from its trend line. B. the dependent and independent variables have similar kinds of trends and movement in the independent variable about its trend line causes movement in the dependent variable towards its trend line. C. the dependent and independent variables have different kinds of trends and movement in the independent variable about its trend line causes movement in the dependent variable towards its trend line. D. the dependent and independent variables have different kinds of trends, but movement in the independent variable about its trend line causes movement in the dependent variable away from its trend line.
A market basket of goods costs $350 in the United States and 200 pounds in the United Kingdom. According to the purchasing power parity theory, the exchange rate should move towards:
A. $0.67 per British pound B. $1.50 per British pound C. $0.57 per British pound D. $1.75 per British pound