In the two-period model, the budget constraint is kinked for all of these reasons, except
A) the real interest rate is greater than zero.
B) there are costs to banks from lending and borrowing.
C) there is asymmetric information in the credit market.
D) there is limited commitment in the credit market.
A
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If the U.S. economy is experiencing falling price levels, the
A. expenditure schedule will shift downward. B. expenditure schedule will shift upward. C. slope of the expenditure schedule increases. D. slope of the expenditure schedule decreases.
Which of the following union tactics, if successful, would increase wages and create a surplus of labor?
a. collective bargaining to fix the wage above the competitive level b. decreasing the marginal revenue product of the union workers c. increasing the demand for union-made products d. restricting the supply of nonunion products that compete with union-made products e. increasing labor productivity by minimizing conflicts and resolving differences between labor and management
The equilibrium rent for marginal land
a. equals zero. b. depends on the supply and demand of land. c. exceeds the opportunity cost of the land. d. is always greater than the equilibrium rent for nonmarginal land.
An oligopoly is a market
A. with few buyers. B. with one buyer. C. dominated by a few sellers. D. under the control of a few politically powerful individuals.