Recently a labor union argued that the standard of living of its members was falling. A critic of the union argued that this could not possibly be true because the union had been acquiring increases in the nominal incomes of its members through
collective bargaining. Is the critic correct?
A. Yes, because when you have a large nominal income, your standard of living automatically
increases.
B. No, because real income may fall if prices increase more proportionately than the increase
in nominal income.
C. No, because real income may fall if prices increase less proportionately than the increases
in nominal income.
D. Yes, because real income may fall if prices increase less proportionately than the
increases in nominal income.
B. No, because real income may fall if prices increase more proportionately than the increase
in nominal income.
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Uber has come under criticism for its surge pricing because consumers see it as
A) equally fair for firms to raise prices after an increase in costs and as a result of an increase in demand. B) completely unfair for firms to raise prices after an increase in costs or as a result of an increase in demand. C) more fair for firms to raise prices after an increase in costs than as a result of an increase in demand. D) more fair for firms to raise prices after an increase in demand than as a result of an increase in costs.
For competitive firms, the curve that represents the value of marginal product of labor is the same as the demand for labor curve
a. True b. False Indicate whether the statement is true or false
The ATC curve is __________ and the AVC curve is __________.
A. U-shaped; U-shaped B. not U-shaped; not U-shaped C. U-shaped; not U-shaped D. not U-shaped; U-shaped
In the long run, monopolistically competitive firms earn zero economic profits.
Answer the following statement true (T) or false (F)