If an industrial union is formed to bargain with a monopsonistic employer, then in this labor market:
A. the resulting wage rate will always be above the competitive level.
B. employment may either increase or decrease.
C. employment will increase.
D. employment will decrease.
Answer: B
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Ronald Coase's insight regarding the firm was that
a. firms tend to be more profitable when economies of scale are greater b. uncertainty and information are the keys to perfect competition c. perfectly competitive firms tend to displace monopolies d. economic activity is best understood in terms of the transaction costs of exchange e. consumers often carry out transactions directly with resource suppliers
According to the purchasing-power parity theory, differences in domestic inflation rates are a major cause of exchange rate movements.
Answer the following statement true (T) or false (F)
Size and age are "fundamental" determinants of the price of any house.
Answer the following statement true (T) or false (F)
Both economists and mathematicians have shown there exists at least one set of prices that will clear all markets in a system simultaneously, known as equilibrium price.
Answer the following statement true (T) or false (F)