Do economists believe that labor unions are good or bad for the U.S. economy?
Economists disagree. Critics argue that by functioning as a cartel, unions raise the wages of union jobs above the equilibrium, which increases unemployment in union jobs and lowers wages in nonunion jobs. Advocates argue that unions give workers some power to negotiate with firms.
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Of the following methods that banks might use to reduce moral hazard problems, the one not legally permitted in the United States is the
A) requirement that firms keep compensating balances at the banks from which they obtain their loans. B) requirement that firms place on their board of directors an officer from the bank. C) inclusion of restrictive covenants in loan contracts. D) requirement that individuals provide detailed credit histories to bank loan officers.
Entrepreneurship refers to
What will be an ideal response?
A monopolist sets the market price for its product.
Answer the following statement true (T) or false (F)
Efficiency is an important social goal because:
A. movements toward economic efficiency make the total economic pie larger. B. it assures a normative outcome. C. it assures a fair outcome. D. it takes into consideration the distribution of income.