Suppose the federal government allows labor unions to act as the sole seller in labor markets, but the government collects a $1 per hour fee to cover unemployment insurance for each union worker
Assuming this fee is not so large that it forces the unions to disband, what is the impact of this fee on the equilibrium wage and employment level in the monopolized labor market? A) After-tax wages and employment decline.
B) After-tax wages increase and employment declines.
C) Employment increases and after-tax wages decline.
D) No change in after-tax wages or employment levels.
A
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If demand for a seller's product is perfectly elastic, which of the following is true?
i. The firm will sell no output if it sets the price its product above the market price. ii. There are many perfect substitutes for the seller's product. iii. The firm will sell no output if it sets the price its product below the market price. A) i only B) ii only C) iii only D) i and ii E) ii and iii
People who "sell short" are selling goods
A) at below-market prices. B) of poor quality. C) to purchasers who cannot afford to pay for them. D) they do not yet own. E) with the expectation of buying them back again.
The Landrum-Griffin Act was designed to
a. protect workers from union abuses and criminal activities b. eliminate racial and sexual discrimination by unions c. require firms to bargain in good faith with unions d. prohibit the union shop e. stop unions from striking in support of other unions' strikes
The components of the formula for the Taylor rule includes each of the following, except:
A. the current inflation rate. B. the inflation gap. C. the 30-year U.S. Treasury bond rate. D. the target federal funds rate.