Consider a labor market with two sectors-a union sector and a non-union sector-with perfectly inelastic labor supply. The presence of the union sector causes all of the following results except:
A. fewer workers are hired in the union sector than those same firms would hire if there was no union sector.
B. the nonunion wage is less than the competitive wage when there is no union sector.
C. more workers are hired in the nonunion sector than those same firms would hire if there was no union sector.
D. total surplus added between the union sector and the nonunion sector is the same as total surplus when there is no union sector.
E. the union wage is greater than the competitive wage when there is no union sector.
Answer: D
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A current account deficit can occur if ________, all else equal
A) net national savings equals zero B) net factor income from abroad equals zero C) net exports are negative D) net investment income is negative
Look at this producer surplus graph. If Caroline is already producing wheat at P1, what happens when the price moves to P2?
a. Her producer surplus will decrease.
b. Her producer surplus will increase.
c. Nothing happens because she is already producing at a lower price.
d. She will have to produce more to make the same total profit.
The formula for an infinite sum is 1 / (1 - b), where b = (1 - reserve ratio).
Answer the following statement true (T) or false (F)
Refer to the information provided in Table 6.2 below to answer the question(s) that follow. Table 6.2Number ofCandy Bars per DayTotal UtilityMarginal Utility140?275?3100?4115?5?5Number ofHot Dogs per DayTotal UtilityMarginal Utility130?254?372?484?5?6Refer to Table 6.2. The total utility of five candy bars per day is
A. 115. B. 120. C. 130. D. indeterminate from this information.