An industry with a strong union (e.g., UAW)
a. will increase wages in the nonunion sector of the industry
b. will increase employment for union workers when wages increase
c. can force employers to hire all unions members regardless of the wage
d. can increase the demand for union workers by increasing turnover and reducing productivity
e. can bargain for wages that are greater than the market's equilibrium wage
E
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Which of the following statements about the rate of return is NOT correct?
A) The total rate of return may be greater or less than the current yield. B) The total rate of return may be greater or less than the rate of capital gain. C) The total rate of return may never be negative. D) The total rate of return is greater than the coupon, holding everything else constant.
In a perfectly competitive market, transient economic profit can be earned by
a. the firms that hire the most employees b. the last firm to enter the market c. those firms that supply low-income neighborhoods d. the first firm to adopt a new technological advance e. those firms that use the most capital-intensive methods of production
Return to the situation with the executive from the previous question. Now assume that shareholders cannot observe effort, so cannot specify how hard the executive works in the contract but must induce it through the incentive scheme. Which of the following wage contracts would work out best for shareholders in equilibrium?
a. A flat wage w = 2,500 with no profit share. b. A share of 35% of the gross profits. c. A share of 55% of the gross profits. d. A share of 70% of the gross profits.
Keynesians challenge the classical or monetarist view that payment schedules and patterns of spending and saving associated with the transactions demand for money are basically stable
Indicate whether the statement is true or false