If a firm's demand for labor is elastic, a union-negotiated wage increase will:
A. necessarily be inflationary.
B. cause the firm's total payroll to increase.
C. cause the firm's total payroll to decline.
D. cause a shortage of labor.
Answer: C
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A cartel is:
A. a duopoly with more than two firms. B. a firm that always has a dominant strategy. C. a number of firms who collude to make collective production decisions about quantities or prices. D. the "leader" of an industry, typically the firm with the largest market share.
A theory can best be defined as
a. an untested assertion of untested fact. b. a collection of assumptions that simplify the real world. c. an opinion of a reliable person who studies a subject or discipline. d. a deliberate simplification of factual relationships that attempts to explain how those relationships work. e. the body of knowledge that has been scientifically verified by the scientific community.
The net export component of aggregate demand is defined as U.S
a. imports minus U.S. exports. b. imports plus U.S. exports. c. exports minus U.S. imports. d. exports minus taxes and customs duties.