Which of the following is a reason why the union wage gap might overestimate the actual effect unions have on wages?
A. Nonunion firms may pay higher wages in order to stave off unionization.
B. Unions tend to negotiate better fringe benefits for their members than what nonunion workers receive.
C. Higher union-negotiated wages likely attract more productive workers to union jobs.
D. The union wage gap can be underestimated but never overestimated.
E. Unionized workers tend to work more hours each week than nonunionized workers.
Answer: C
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A) P1 and E. B) P3 and F. C) P1 and G. D) P2 and F.
A point outside the production possibilities frontier
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In the above table, dissaving occurs at every level of income below
A) $5,000. B) $7,000. C) $10,000. D) $8,000.
Other things the same, if the Fed increases the quantity of money, the ________ because ________
A) nominal interest rate decreases; the supply of money curve shifts rightward B) nominal interest rate increases; the supply of money curve shifts rightward C) nominal interest rate does not change; only the real interest rate is effected D) nominal interest rate decreases; the supply of money curve shifts leftward E) nominal interest rate increases; the supply of money curve shifts leftward