An important part of the market system is that producers and consumers consider the public interest in making production and consumption decisions.
Answer the following statement true (T) or false (F)
False
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Collective bargaining can:
A) makes it easier for workers outside a union to get jobs. B) increase profitability of firms. C) reduce wages. D) increase unemployment.
In the above figure, after the second worker is hired, the marginal product of labor is
A) increasing. B) diminishing. C) constant. D) zero.
Which of the following are implicit costs for a typical firm?
a. insurance costs b. electricity costs c. opportunity costs of capital owned and used by the firm d. cost of labor hired by the firm e. the cost of raw materials
Suppose that the economy has witnessed an 8 percent increase in its money supply over the last few years and the Fed now announces a plan to increase the money supply by 4 percent per year. What will be the public response, assuming that the Fed has a reputation for always implementing its announced plans?
a. High-wage contracts will prevail, and the economy will experience lower inflation at the cost of higher unemployment. b. High-wage contracts will prevail, and the economy will experience lower unemployment at the cost of higher inflation. c. Low-wage contracts will emerge, and the economy will experience lower inflation with no change in the unemployment rate. d. Low-wage contracts will emerge and the economy will experience higher unemployment with no change in the inflation rate. e. Low-wage contracts will emerge, and the economy will experience lower inflation at the cost of higher unemployment.