When a group of workers forms a union, they introduce an element of
A. monopoly into the product market.
B. pure competition into the labor market.
C. monopoly into the labor market.
D. monopsony into the product market.
Answer: C
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If a $2 billion increase in investment brings about a $5 billion increase in equilibrium expenditure, we know that the multiplier equals
A) 4. B) 3. C) 10. D) 5. E) 2.5.
When does an oligopoly market result in a cartel? What conditions must be present for the cartel to be successful?
What will be an ideal response?
When the economy is hit by a negative demand shock and the central bank pursues policies to increase aggregate demand to its initial level, then
A) inflation will be lower. B) output will be at its potential. C) output will be lower. D) inflation will be unchanged. E) both B and D.
Denise values a stainless steel dishwasher for her new house at $500, but she succeeds in buying one for $350 . Denise's consumer surplus is
a. $150. b. $350. c. $500. d. $850.