The existence of labor unions could contribute to real-wage rigidity, except that in the United States
A) labor unions are outlawed.
B) most workers aren't in unions.
C) unions are interested in benefits, not wages.
D) unions try to increase employment rather than negotiating over wages.
B
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Lucy buys only magazines and CDs. Both are normal goods. Lucy's income decreases, but the prices of magazines and CDs do not change. Marginal utility theory predicts that Lucy will ________
A) buy fewer magazines and fewer CDs B) substitute magazines for CDs C) increase her marginal utility from both magazines and CDs by buying more magazines and CDs D) buy more magazines and more CDs
If Slovenia is a large country in world trade, then if it imposes a large set of tariffs on many of its imports, this would
A) improve its terms of trade. B) have no effect on its terms of trade. C) harm its terms of trade. D) decrease its marginal propensity to consume. E) increase its exports.
What most accurately describes the trend in inter-city prices between 1815-1860?
a. Prices of goods in different eastern cities diverged. b. The prices of goods in the Midwest converged towards the prices of goods in the east. c. Prices of goods in the Midwest decreased relative to the prices of goods in the east.
Consider the following regression equation: 
. Which of the following indicates a functional form misspecification in E(y|x)?
A. Ordinary Least Squares estimates equal Weighted Least Squares estimates. B. Ordinary Least Squares estimates exceed Weighted Least Squares estimates by a small magnitude. C. Weighted Least Squares estimates exceed Ordinary Least Squares estimates by a small magnitude. D. Ordinary Least Square estimates are positive while Weighted Least Squares estimates are negative.