Unions will be more effective at raising wages when it is difficult for nonunion competitors to enter the industry.
Answer the following statement true (T) or false (F)
True
In industries where competitors find entry difficult, unions do not have to worry as much about a nonunion competitor with lower labor costs undercutting their prices.
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The slope of a typical isoquant is negative because to produce a given output, a producer
A) can use less of one input only if the productivity of that input increases B) will use more of one input only if the price of that input falls. C) will use more of one input only if it uses more of another. D) can use less of one input only if it uses more of another.
A $1 increase in autonomous spending has a multiplier effect greater than one on total expenditures and output because
A) each expenditure is respent in the same amount continuously. B) overtime expenditures tend to increase. C) total expenditures include autonomous expenditures. D) each time an expenditure occurs the recipient respends a proportion of the funds.
A fair bet is one where
A) the player has a 50/50 chance of winning. B) the player's utility function is convex. C) the expected value is zero. D) the expected value is positive.
In January, 2,500 quarts of ice cream are sold in Boston at $2 a quart. In February, 3,000 quarts are sold at $2.50 a quart. This change in quantity sold and price may have been caused by
a. a reduction in wages in the Boston area. b. the introduction of labor-saving automated ice cream-packing machinery. c. the release of a medical study showing that ice cream consumption improves mental health. d. the decision by Boston ice cream sellers to eliminate discount coupons.