When unions raise wages beyond what productivity increases would permit,
A) more union workers are employed.
B) there are higher wages for all union members.
C) there is a redistribution of income from low- to high-seniority workers.
D) nonunion workers wages in the economy also increase.
C
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In the countries that have adopted inflation targeting, the inflation rate has typically
A) not changed. B) decreased to zero. C) increased. D) decreased.
Economies of scale can be caused by all of the following except:
A. price discounts for large scale purchases. B. labor specialization. C. use of more productive equipment. D. increases in the firm's average total cost.
The figure below shows the U.S. market for imported wine. For simplicity, we consider export supply curves to be flat. Chilean wine is available for $480 per barrel and French wine is available for $420 per barrel.
Suppose the United States has a tariff of $80 per barrel on imported wine. Then, the United States joins a trade bloc with Chile. What is the net effect of joining the trade bloc on U.S. well-being?
A. The national welfare increases by $250 billion. B. The national welfare decreases by $800 million. C. The national welfare increases by $50 million. D. The national welfare decreases by $550 million.
Government spending that changes automatically without action by Congress is
A. payments to contractors for routing services performed. B. national defense. C. a noncontrollable expenditure. D. discretionary payments.