Consider two labor markets in which jobs are equally attractive in all respects other than the wage rate. All workers are equally able to do either job. Initially, both labor markets are perfectly competitive. If a union organizes workers in one of the markets, then the wage rates will tend to
a. rise in both markets.
b. fall in both markets
c. rise for the union jobs, but remain unchanged for the nonunion jobs.
d. rise for the union jobs and fall for the nonunion jobs.
d
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When the U.S. interest rate differential ________, the demand for dollars ________ and the demand curve for dollars shifts rightward
A) rises; does not change B) rises; decreases C) falls; increases D) rises; increases E) falls; decreases
The single source of concern about the national debt is
a. gimmicks like the National Debt Clock. b. the interest payments that must be made on the debt every year. c. the transfer payments that must be made every year. d. the large trade deficits that we face with other countries. e. none of the above.
An increase in the price of product A will:
A. increase the marginal utility per dollar spent on A. B. decrease the marginal utility per dollar spent on A. C. not affect the marginal utility per dollar spent on A. D. cause utility-maximizing consumers to buy more of A.
The provision of funds to the mortgage market through the purchase of mortgage-backed securities and mortgages is performed by ________
A) Fannie Mae and Freddie Mac B) the Federal Housing Administration C) the Federal Reserve System D) subprime borrowers