Unions support minimum wage laws, because
A) union workers are typically paid the minimum wage.
B) an increase in the minimum wage paid to low-skilled labor increases the opportunity cost of employing high-skilled union labor and, hence, increases the demand for union labor.
C) an increase in the minimum wage paid to low-skilled labor increases the opportunity cost of employing low-skilled labor and, hence, increases the demand for union labor.
D) an increase in the minimum wage paid to low-skilled labor causes the supply curve of low-skilled labor to shift leftward and, hence, increases the demand for union labor.
C
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Because of product differentiation, firms
A) do not have to compete because their products are unique. B) cannot compete on price. C) can compete on the basis of quality. D) are unable to compete by using advertising. E) must compete on only price.
Temporary, short-term discount loans to banks in areas in which agriculture and tourism are important are known as
A) primary credit. B) secondary credit. C) seasonal credit. D) repo loans.
Suppose that data for a particular economy over time suggest that its aggregate demand curve is both steep and shifts frequently. We might reasonably infer that ________
A) the central bank has an activist emphasis on the stability of economic activity B) wages and prices are remarkably flexible C) policy lags are quite long D) all of the above E) none of the above
When a family's income is low and it is spending more on consumption than it is receiving in income
A) the APC must be increasing. B) the APC must be equal to the ratio of planned consumption expenditure to total saving. C) the MPC must be zero. D) some segment of the consumption function curve lies above the 45-degree line, indicating dissaving.