When the possibility for strongly efficient contracts occurs, what will happen?
A. Isoprofit lines must be horizontal.
B. The union and firm negotiate over the wage level but not over the employment level.
C. The labor demand curve must be vertical.
D. Isoprofit lines are parabolas that open upward.
E. The union and firm negotiate over the employment level but not over the wage.
Answer: B
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Average total cost equals
A) the change in total cost divided by the change in output. B) total fixed cost divided by output. C) average fixed cost plus average variable cost. D) total cost minus total variable cost. E) average fixed cost plus average variable cost plus marginal cost.
The Federal Trade Commission was created by Congress as an expert body to
A) help small businesses compete by offering technical advice and assistance. B) help small businesses compete by providing low-interest start-up loans. C) prevent insider trading. D) promote competition by preventing trade practices held to be unfair. E) regulate prices on spot and futures markets.
Explain how "net capital flows" are related to "net foreign investment," "net foreign direct investment," and "net foreign portfolio investment."
What will be an ideal response?
In a free-market economy, prices coordinate society’s decisions about
A. how and for whom to produce. B. what, how, and for whom to produce. C. how and for whom to produce but not how much to produce. D. how much and for whom to produce but not how to produce.